Spirit Telecom saw its revenue grow in the first three months of 2020 as its recent acquisition spree begins to show returns.
The fixed wireless network operator saw has been on an acquisition spree of late and saw revenue for Q3 of the 2020 financial year hit $10.3 million.
This was up 69 percent from the previous quarter and up 150 percent from the corresponding quarter last year. Recurring revenue was also up 17 percent from Q2 and up 66 percent from Q3 2019.
Growth was driven largely by business-to-business (B2B) revenue, which grew 220 percent year over year, while the company's other segments remained steady.
Spirit acquired seven companies between March 2019 to February 2020, five of which were IT service providers.
These included Arinda IT, Phoenix Austec, cloud and security specialist CloudBT and Melbourne-based MSPs Trident Computer Services and Neptune Managed Services.
The other two were fixed telco provider LinkOne and telco wholesaler Building Connect.
The first three were integrated into Spirit’s core business, which includes high-speed internet and managed IT services for small and medium businesses, while Trident and Neptune were combined to form Trident Technology Solutions, a division that focuses on health, education and aged care verticals.
A third business unit is Spirit X Digital, a recently launched B2B internet and telco marketplace aggregator platform developed to help sell Spirit’s cloud, security and MSP products.
Looking ahead, Spirit is optimistic it will continue growing despite the ongoing Coronavirus pandemic due to its “defensive portfolio”, with some key sectors of education and health resilient to market conditions and most of its customers are also essential service providers.
The company also spruiked its new business continuity product range, including remote work solutions, home internet, disaster recovery, teleconferencing and even healthcare solutions.
Spirit also flagged its intentions to acquire more companies, some of which are at the due diligence and negotiation stages.