Story image

Vocus revenue, profit soar on back of acquisitions

23 Feb 2017

Vocus Groups’ revenue and profits have jumped massively for the first half of FY2017, with the telecommunications provider recording a 403% increase in revenue and a 235.6% increase in net profit after tax.

The company recorded revenue of AU$888.2 million with underlying NPAT of $91.8 million, up from $27.4 million year on year.

New Zealand revenues were up 444.6% from AU$29.2 million to $158.8 million, with Australian revenue up 382%, from AU$150.6 million to AU$725.6 million.

Vocus attributed the results to organic growth, a full six month contribution from the merger with M2 Group – which included CallPlus – in February 2016, and an initial contribution from its October 2016 acquisition of Nextgen Networks.

Geoff Horth, Vocus chief executive, says the company has continued to demonstrate organic growth across the business despite increasing competition in a number of areas and a period of ‘significant’ corporate activity and integration.

As well as the M2 and Nextgen acquisitions, Vocus’ buying spree in recent years has seen it acquire Amcom in 2015.

“The mass market businesses in both Australia and New Zealand continued to secure additional market share undert heir respective fibre rollouts, with our NBN market share increasing from 6.4% to 7.8% (ex satellite) and UFB share increasing to 12% despite fierce competition in both markets,” Horth says.

“The rollout of fibre in both Australia and New Zealand is an extremely positive opportunity for Vocus, with similar margins to copper broadband and significantly lower churn from the enhanced on-net customer experience,” he says.

Horth says the company’s corporate sales team is leveraging the merged business platform and product set to expand its addressable market, with underlying organic growth in revenue of around 8%.

On the New Zealand front, he says the company is building out its platform following the recent acquisitions and securing new business across corporate and wholesale and the mass market segments.

“The business continues to shape its portfolio to leverage its core, as demonstrated by the sale of its 50% share of the Connect 8 joint venture with Spark New Zealand and acquistion of a small energy retailer to increse its bundling opportunities in the market,” Horth says.

The company expects FY17 EBITDA of between AU$430 million to $450 million.

Five things MSPs need to keep in mind in 2019
A Datto APAC channel exec outlines the most important factors for MSP to being paying attention to in the coming year.
VMware allures APJ channel veteran to take the reins
Balasingam will take on the role of vice president for VMware’s partner business in Asia Pacific and Japan (APJ).
Better data management: Whose job is it?
An Experian executive’s practical advice on how to structure data-management roles within a modern business environment.
Platform9 and Intersect partner to bring unified cloud to A/NZ
“For Intersect, Platform9 represents the single most strategic solution to a set of challenges we see expanding across the board."
Gartner: AI to reduce project management workload
80% of the work performed project management teams will be taken over by AI by 2030, starting this year.
Microsoft Teams’ eight new and upcoming features
After taking Best in Show at Enterprise Connect, Microsoft Teams will be seeing eight new capabilities over 2019.
IDC: NZ's PC market surprise growth will not last
Despite the growth witnessed at the end of 2018, IDC predicts that New Zealand’s traditional PC market in 2019 will decline by -4.4% YoY.
OutSystems and Boncode team up for better code analysis
The Boncode and OutSystems alliance aims to help organisations to build fast and feel comfortable that the work they're delivering is at peak quality levels.