Managed services, cloud boost Over The Wire's financial year

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Managed services, cloud boost Over The Wire's financial year
Michael Omeros, Over the Wire

Another set of acquisitions has paid off for telecommunications service provider Over The Wire as its larger customer base and managed services business has boosted its FY19 results.

The company announced in an ASX notice (pdf) that revenue for the year ended 30 June 2019 was $79.6 million, up 49 percent from $53.6 million the previous year. Net profit after tax came in at $10.1 million, up 83 percent.

OTW's cloud and managed services business has become its second largest revenue source, thanks to its acquisition of Queensland-based Comlinx in 2018. The segment brought in $23 million, up 217 percent from $7.3 million in FY18.

Data networks is still OTW's biggest segment at $37 million, up 26 percent, while voice came in third at $16.4 million, up 17 percent. Co-location also posted growth at $3.2 million, up 11 percent from last year.

The customer base grew in all states where OTW has an office presence, both organically and through acquisitions. South Australia grew 230 percent with the acquisition of Access Digital Networks in 2018, which brought in 250 business customers.

In October 2018, OTW acquired Access Digital and Comlinx for a combined $30 million. The deals were completed in November that year.

“We are delighted to deliver another positive result in FY19,” managing director Michael Omeros said.

“We remain focused on delivering organic growth through geographic expansion and market penetration, complemented by quality acquisitions.”

Looking ahead, Omeros said the company is also set to benefit from “industry tailwinds” in SD-WAN, hosted voice and cybersecurity. “We are excited by the potential opportunities for growth and remain committed to delivering on our strategy,” he said.

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