ASX-listed telco and managed services provider Hubify has reported strong revenue growth amid high demand from enterprise customers and contributions from new staff.
In the six months ended 31 December 2021, Hubify reported revenue of $11.5 million, up 29 percent year over year from $8.9 million, and a profit after tax of $140.8 million, down 78 percent from $651.6 million the previous year.
The company said the growth was due to strong demand for managed services and sold growth in its telco divisions, while earnings and profitability took a hit from an increase in staff headcount during the period. Hubify said it hired some 50 new technical and project management staff.
"1H22 was a transformational period for the company with the establishment of our managed services practice. Hubify successfully recruited technical and project management staff to fulfil the immediate increase in services necessary to manage the growth in the Managed Services division,” Hubify chief executive Victor Tsaccounis said.
“In just over six months we now have over 50 additional employees to deliver IT and Telco solutions to our clients and have the capability to successfully manage the IT and technology needs for large Enterprise customers. This capability will fuel organic growth in our voice and data business as we continue to move up the food chain and grow revenue in the enterprise segment.
“We continue to find our niche in this section of the market and are focused on developing the capability of the organisation to meet strong customer demand.”
Customer revenues grew by 38 percent year over year to $10.8 million, while recurring revenues increased by 57 percent to $7.8 million, representing 68 percent of total revenue. Total organic growth was also up 16 percent.
Hubify added that the COVID-19 pandemic also impacted revenue in areas such as the provisioning and billing of clients, sales calls to customer prospects, and new client on-boarding.
Tsaccounis added, “In summary, we expect strong organic growth to continue across all of our business divisions, and continue to actively explore acquisition opportunities in the telco/MSP sector and look forward to updating the market as the acquisition pipeline materialises.”
Looking ahead, Hubify expects to see more demand in its Mobility, Voice and Internet &
Networks segments as more Australian SMBs and enterprises start returning to the office, and would provide an “important tailwind” towards the end of the financial year.