VPN Solutions acquisition boosts Over the Wire past $50 million

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VPN Solutions acquisition boosts Over the Wire past $50 million
Michael Omeros, Over The Wire

Over The Wire’s acquisition of VPN Solutions last year has helped the telco bring in more than $50 million in revenue for the 2018 financial year.

The telco posted $53.5 million in revenue for the year ended 30 June, up 57 percent from $34.22 million last year. Profit grew 54 percent to reach $5.53 million, compared to 2017’s $3.6 million.

The company’s share price was also increaed to its highest point at $3.90 at the time of writing, up from yesterday’s $3.52. Its highest price prior to today was $3.72 as of 13 June.

OTW's data networks business saw the most growth in the telco’s product lines, with revenue growing 85 percent to $29.38 million, up from $15.92 million in 2017.

The telco acquired VPN Solutions for $15.6 million on 1 November 2017, its fifth acquisition since 2015.

“We are delighted with our FY18 result. We have delivered strong results since the IPO and achieving over 50 percent EPS growth in the past 12 months endorses our strategy of delivering organic growth through geographic expansion complemented by quality acquisitions,” OTW managing director Michael Omeros said.

“We are pleased with the current position of the business and remain well positioned to continue to deliver on our strategy.”

Other product lines also saw revenue growth, with voice up 31 percent to $14 million, cloud and managed services up 50 percent to $7.26 million, and co-location up 4 percent to $2.86 million.

OTW’s expansion further into New South Wales and Victoria also yielded growth, with revenue up 30 percent and 153 percent, respectively.

Earlier this year, OTW secured a deal with startup small business lender Judo Capital to build a network to enable staff to work remotely. Its private network, voice and network security capabilities were integrated with Judo’s telecommuting network, allowing staff to work from anywhere.

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