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Listed communications firm NetComm Wireless has reported record revenues of $88.6 million for the six months to the end of December 2017.
Revenue was up 89% for the half year as NetComm also reported an EBITDA up almost 13 times to $9.2 million, and net profit after tax up 295% to $3.7 million.
NetComm (ASX:NTC) notes the result followed the contract signing for the National Broadband Network (NBN) to supply Network Connection Devices (NCDs) for NBN’s FTTC project, with initial volume commitment delivering $66 million in revenue within an 18 month-period post-launch planned for 2H18.
NetComm Chairman Justin Milne said, “It has been a very strong period for NetComm as we continued to deliver our strategic plan. I am particularly pleased to see NetComm achieve outstanding growth following critical investments made over the past two years.
{loadposition peter}“Group revenue was up 89% to a record $88.6 million for the half, as NetComm grew revenues from key projects. Revenue from our high growth M2M business, which now represents 85% of Group revenue, was up 107% to $75.1 million. The period also saw revenue from the Company’s traditional Broadband business recover, to be up 27%, as we implemented initiatives to reinvigorate that business.”
CEO & Managing Director Ken Sheridan said, “Over the period we received material revenues across several of our key contracts, as our high growth M2M business expanded. We continued to rollout the Ericsson/nbn fixed wireless contract and anticipate launching a new 100mbps service this calendar year, our third technology upgrade in only four years. We delivered our first sales of fixed wireless devices to AT&T for the initial rollout, and while the pace of the rollout has been slower than initially expected, we anticipate an acceleration in FY19 as AT&T look to ensure 1.1 million premises are available for service by 2020.”
Just last week, NetComm Wireless claimed the world’s fastest 4G LTE fixed wireless outdoor device with the launch of its next generation LTE Intelligent Fixed Wireless Access unit (IFWA-6xx) which will be used to deliver broadband to customers on the NBN.
According to NetComm, the IFWA-6xx is the first technology of its kind to integrate an antenna design with network grade diagnostics and the capacity to deliver fibre equivalent broadband services to homes and businesses in rural and underserved areas worldwide.
