Telco services company 5G Networks has continued posting strong growth on the back of its networks, data centre and cloud services divisions.
In the six months ended 31 December 2020, the company reported revenue of $37.3 million, a 47 percent increase year over year from $25.4 million. EBITDA increased 105 percent from $3 million the previous year to $6.2 million.
The growth was driven by revenue increases in almost all its segments, with cloud services leading the way, growing from $6.9 million to $15 million year over year. Network & Voice, Data Centres, Hardware & Software also saw revenue increases, while Managed Services remained steady at $6.5 million.
The revenue also included the results from the recent acquisition of Webcentral, which joined 5GN in October 2020. Webcentral contributed $9.3 million in revenue and an operating loss of $500,000 for the period.
“5G Networks’s first half financial performance has been strong with the continued transition to higher margin annuity revenue streams delivering record growth in EBITDA and operating cashflows,” the announcement read.
“The successful acquisition of a controlling interest in Webcentral on 28 October 2020 has enabled 5GN to accelerate entry into the SMB market. This strategy delivers 5GN access to Webcentral’s base of 330,000 SMB customers, managed through the online sales channel.”
5G Networks said moving forward it would provide Webcentral with cloud, telco and managed IT services while Webcentral will provide 5GN with its capability for software development for operational improvement and automation.
The telco will also develop a comparable digital sales channel as used in Webcentral’s portal to implement automation and deliver services faster to wholesale clients.
“5GN continues to strengthen its successful track record for prudently completing acquisitions that bring accretive value through increased earnings and growth. The Webcentral acquisition also underpins the next phase of 5GN’s strategy for continuing its vertical integration across the industry,” the announcement read.
“Future acquisitions will be funded from existing cash reserves, and it is expected that a large amount of the Webcentral debt owing to 5GN will be repaid over the next 12 months.”