Macquarie Telecom takes hit to telco segment in otherwise bumper half-year

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Macquarie Telecom takes hit to telco segment in otherwise bumper half-year

Macquarie Telecom has reported steady half-year growth despite taking a hit to its telco business, thanks to a strong showing from the company’s other segments.

In the six months ended 31 December 2021, the Telecom business reported revenue of $64 million, down 4.7 percent year over year from $68.7 million. MacTel said the decline was due to price reductions, citing lower NBN broadband costs and SD-WAN, which it said had been passed on to customers.

Cloud services and Government saw the most growth from $64.8 million in H1 FY2021 to $76.4 million in FY2022, representing an 11.6 percent improvement. The Data Centres segment saw its revenue grow 1.4 percent from $19.6 million to $21 million.

Overall revenue increased 5.7 percent year over year for the period from $143.6 million to $149.3 million, while EBITDA is $40.5 million, up 11 percent year over year from $36.4 million. Net profit after tax was $3.7 million, a 48 percent decline from $7 million last year.

“This result represents our fifteenth consecutive half of EBITDA growth, an outstanding achievement made possible by our committed teams, our strategy and ongoing investments across all of our business units,” MacTel chairman Peter James said.

Looking ahead, MacTel expects investments on its Cloud Services and Government and Data Centres segments to underpin growth for the rest of FY 2022, including the development of a new public cloud and security capability, as well as continued demand from Federal Government clients.

The company also expects Telecom will continue to be affected by COVID lockdowns, but would be partially offset by demand for new technologies including SD-WAN.

MacTel chief executive David Tudehope said, “Strong demand for cyber security, private and public cloud has driven our investment in our Government and Cloud Services businesses. Continued demand from our Federal Government Agencies for cybersecurity and secure cloud, including Tier 1 Agencies such as ATO, gives high confidence for future growth in the Government Business.“

“Our Intellicentre 3 East data centre fit out project for a leading corporation was delivered on
time and on budget, with associated revenue commencing as planned from this quarter. We will continue to reinvest profits back into our Macquarie Park Data Centre Campus, an outstanding facility that provides world class infrastructure to support the digital economy.”

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