Growing Australian telecommunications player, the MNF Group, has put in a strong performance for the six months to the end of December, with revenue up 28% to $117 million, delivering increased profits.
The strong half-year result prompted chief executive Rene Sugo to flag that MNF will invest up to $3.5 million in FY18 for the relaunch of Pennytel as a new suite of mobile products under a national brand, operating in the retail segment.
Results released today show MNF's (ASX:MNF) earnings before interest, tax, depreciation and amortisation increased by19% to $11.9 million, with net profit after tax increasing by 25% to $6.1 million, when compared with the corresponding period a year earlier.
In more positive news, gross margin for the half increased by 27% to $34.1 million, as a result of what MNF says was strong organic growth within the business.
{loadposition peter}The company says the strong increase in gross profit for the period versus the prior corresponding period is attributable to solid growth in all three operating segments of the business – domestic retail, domestic wholesale and global wholesale.
MNF sees the Pennytel launch as an enormous opportunity only made possible by MNF’s extensive software ecosystem.
The company says it has relaunched Pennytel as a national brand and a new suite of mobile products, to take advantage of a segment it expects will deliver significant future growth, based around its mobile first software platform.
“The relaunch of the Pennytel brand represents a unique opportunity for MNF Group to benefit from the mainstream telco market”, said Sugo.
“Our strategy is to lead with a mobile first product offering based on our Telstra Wholesale MVNO agreement and by taking advantage of our vast mobile enablement platform.
“We will later look to introduce an NBN-based product line once the brand is established and the NBN rollout has matured to make customer acquisition easier.”
According to MNF, it sees the Pennytel launch as an enormous opportunity only made possible by its extensive software ecosystem – with expectations of acquiring 250,000 subscribers by June 2020, and anticipating an EBITDA contribution of circa $7.9 million in that year.