Inabox gains AU$4.25m in customer contracts
Inabox Group has signed 12 new customers this year, with total contracts valued at more than AU$4.25 million in revenue over the next three years.
Under the contracts, Inabox will be responsible for migrating more than 3,000 end-user customers to Inabox's telecommunications platform. Customers include Jim's Mobile of Jim's Mowing, Bendigo Telco, E.Tel, and Easy Communications.
In addition to this, the company believes it will see its earnings before interest, tax, depreciation, and amortisation (EBITDA) more than double for the 2016 financial year, which will be driven by the growth of its Inabox and recently acquired Anittel businesses.
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"Growth in these businesses, combined with AU$2 million of annualised cost savings, are expected to result in EBITDA of at least AU$5 million for FY16," the company reported.
Despite this optimism, Inabox expects that profitability for the second half of FY15 will be below the corresponding previous half. It predicts that EBITDA for the second half of FY15 will be AU$796 million, compared to the reported AU$1,270 million during the corresponding period last year. Net profit is expected to be at a loss of $977 million by the second half, a difference from the $629 million that was reported during 2H14.
According to the company, 2H15 results will include AU$0.6 million of one-off acquisition and redundancy costs, related to the acquisition and integration of Anittel. At the same time, Inabox will incur higher interest, depreciation, and amortisation charges relating to the Anittel business and the company's Cisco HCS platform, which now supplies to over 10,000 services for Tasmanian government departments.
"Inabox is pleased with the continued growth of its next-generation voice and data services. The Enablement business also continues to grow strongly, and now supports over 30,000 services in operation," the company said.
"The integration and restructure of Anittel is proceeding well, and Inabox expects it to break even on an EBITDA run rate basis before the end of June 2015. Anittel's turnaround is supported by growth in the HCS business and new sales initiatives, and labour productivity gains in the IT services business."