Domestic and global wholesale drives MNF Group revenue up

Increase in revenue of 15 per cent to $220.7 million for the full year

Rene Sugo (MNF Group)

Rene Sugo (MNF Group)

Credit: MNF Group

MNF Group has closed the 2018 financial year with a 15 per cent increase in revenue posting $220.7 million, driven by strong growth in domestic wholesale – 20 per cent – and global wholesale – 17 per cent.

MNF Group owns MyNetFone, PennyTel and Symbio Networks among other brands.

Excluding cost associated with acquisitions, earnings before interest, tax, depreciation and amortisation (EBITDA) increased by three per cent to $24.6 million, with net profit after tax (NPAT) decreasing by 1.7 per cent to $11.9 million, compared to the prior year.

Meanwhile, EBITDA results were impacted by a one-off investment into the PennyTel brand launch of $2.3 million, which also impacted NPAT results.

In February, MNF told shareholders it was expecting a $3.5 million impact from the PennyTel brand on EBITDA.

Specifically, the business explained at the time the impact would include $500,000 of costs incurred as part of the launch of the PennyTel MVNO (mobile virtual network operator) on the Telstra network, announced on 30 January.

“We are pleased with our gross margin growth, which was driven by strong growth across all segments: domestic wholesale (up 15 per cent), global wholesale (up 17 per cent) and domestic retail (up 22 per cent),” MNF Group CEO Rene Sugo said.

“The domestic retail segment benefited from a full year contribution of CCI, as well as strong growth in enterprise and government (up 13 per cent) and small to medium business (up 11 per cent).

"We expect the performance in these sub-segments to accelerate into FY19 as new technology continues to disrupt voice communications thanks to the roll-out of the NBN."

On 21 June, MNF revealed an agreement to acquire Sigapore-based Superinternet Group for S$2 million.

Superinternet Group, the parent company of internet services provider Superinternet Access, is a lincensed independent facilities based operator (FBO) in Singapore, a lincense required by the local government for telecommunications systems and services provider.

Through the acquisition, which was completed on 6 July, MNF Group plans to upgrade the existing network infrastructure with its software eco-system, enabling the full suite of MNF wholesale, enterprise and government products to be delivered domestically and globally.

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