VPN Networks acquisition boosts Brisbane telco Over The Wire's half-year results

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VPN Networks acquisition boosts Brisbane telco Over The Wire's half-year results
Michael Omeros, Over The Wire

Brisbane telco and IT services provider Over The Wire has maintained revenue and profit growth on the back of its ongoing acquisition spree.

The company made its fifth acquisition since 2015 in November last year, when it acquired Cisco partner VPN Solutions for $15.6 million.

Revenue for the half-year ending 31 December 2017 came in at $24 million, up 72 percent from the same period in the previous year, while net profit after tax was $2.18 million, up 39 percent.

On the release of the news, Over the Wire shares surpassed $3 to reach $3.07 per share at the time of writing, up 26 cents from its close last week. 

“We are pleased to deliver another strong result that has been built from positive organic growth and selective quality acquisitions,” Over The Wire managing director Michael Omeros said.

“We remain focused on our growth strategy and committed to deliver our stated growth objectives whilst also continuing to invest for the future.”

The data networks business remains Over The Wire’s highest earner with $12.6 million in revenue, which is up 109 percent from $6 million in the first half of 2017. VPN Solutions contributed $1.9 million to the data networks revenue.

The voice, cloud/managed services and colocation divisions posted 38 percent, 90 percent and 6 percent growth, respectively.

“Business performance for the first half of the year is very pleasing,” Over The Wire stated. 

“The company continues to generate strong operational cash flow and remains well positioned to continue its growth.”

Over The Wire will continue to target at least 20 percent year-over-year revenue growth, which it plans to achieve through continued expansion into New South Wales and Victoria, in addition to its product and services sales push.

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