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Inabox achieves 144 percent EBITDA growth from Anittel acquisition

Telco provider Inabox has reported that EBITDA increased by AU$2.6 million year on year, while revenue increased by 80 percent to AU$41.9 million.

Australian telecommunications provider Inabox has attributed the acquisition of Anittel and indirect customers as having helped the company achieve overall growth during the half-year period ending December 31, 2015.

The company reported first half earnings before interest, tax, depreciation, and amortisation (EBITDA) increased by 144 percent to AU$2.6 million, compared with the same period in the previous year of AU$1.1 million.

Revenue also experienced an overall increase of 80 percent year on year to AU$41.9 million, with recurring revenue accounting for approximately 75 percent of total revenue. Net profit after tax grew to AU$0.43 million, an increase of 15 percent.

According to Inabox, the growth in revenue was driven by each of the company's three business units: Indirect saw an 8 percent growth from 1H15 and contributed to AU$24.3 million of revenue; enablement increased by 93 percent from 1H15 and contributed AU$1.4 million of revenue; and direct contributed AU$16.2 million of revenue.

Inabox clarified that its direct business unit was formed when the company acquired Anittel for AU$9.88 million. As part of that deal, Inabox reported it gained 12 new customer contracts during 2015 that were valued at more than AU$4.25 million in revenue over the next three years. It also said the acquisition restructured the business in a way which "dramatically" improved its performance and profitability.

At the same time, during the period its enablement business, which provides provision, billing, and support services, saw a 167 percent increase in total supported services from 1H15. Inabox said this was due to the 23,000 new supported services that were added during the half-year, taking total support services in excess of 55,000.

Meanwhile, depreciation and amortisation expense came in at AU$1.6 million, which the company said was "substantially higher" during this half-year compared with the AU$0.5 million reported in the first half-year. Finance costs were also higher than 1H15 at AU$0.24 million.

"These increases largely relate to the businesses acquired from Anittel and, in particular, the Hosted Collaboration System (HCS) platform that provides services to the Tasmanian government under a long-term supply agreement," the company reported.

Based on the 1H16 results, Inabox believes it is now on track to deliver over AU$5 million in EBITDA for the full year. It outlined there are plans to strengthen its direct business particularly in the eastern states and introduce additional products and services tailored to its SMB clients; its enablement business from the acquisition of new customers; and its indirect business by focusing on sales of voice and data services to offset the gradual decline of fixed-line services.

At the start of the year, the telco provider hired Chris Ford as the company's newest chief technology officer, who was responsible for leading Telstra's AU$150 million digital transformation program.

CEO and managing director Damian Kay said at the time that Ford's appointment is part of the company's move to boost its digital offerings.

"I am excited that Chris has come on board. His experience in the digital space will be instrumental in delivering on our vision to develop our digital capabilities," he said.

"Chris brings with him a wealth of experience and knowledge from previous roles with Telstra and Alcatel-Lucent."

Inabox also recently dissolved the the Anittel CEO role, moving Vincent Pesquet to the company's chief operating officer position. Under the new role, Pesquet will be responsible for leading the sales, marketing, and operational teams for both the direct and indirect channels.