Vodafone Tower. Source: The Financial Times
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Comms Group (CCG) signs a global supply agreement to provide key communications and related telecommunications services to international telco provider Vodafone Global Enterprise
  • The telecommunication services to be provided to Vodafone’s customers include Microsoft Teams calling (direct routing) services, SIP trunking services and hardware-based voice solutions
  • Comms says revenue generated will be dependent on the number of users onboarded but it expects the initial three-year agreement to materially add to the current $50 million annualised revenues as well as to annualised EBITDA in years two and three
  • The company says it will immediately mobilise staff and resources and commence infrastructure and systems upgrades and enhancements to support Vodafone, which requires a capex to support the initiatives of about $500,000 over a 12-month period
  • CCG shares up 10 per cent to 11 cents

Comms Group (CCG) has signed a global supply agreement to provide key communications and related telecommunications services to international telco provider Vodafone Global Enterprise.

The company said the telecommunication services to be provided to Vodafone’s customers included Microsoft Teams calling (direct routing) services, SIP trunking services and hardware-based voice solutions.

Comms said revenue generated from the deal would be dependent on the number of users who onboarded but estimated it would materially add to current annualised revenue of about $50 million as well as to annualised EBITDA in years two and three.

The agreement will involve an initial investment in mobilisation costs, staff deployment and contract establishment related costs, which the company said was expected to have a negative impact on overall EBITDA in year one.

Comms said it would immediately mobilise staff and resources and commence infrastructure and systems upgrades and enhancements to support Vodafone, which requires a capital expenditure to support the initiatives of about $500,000 over a 12-month period.

The agreement is for an initial three years and then renewable annually.

Comms said it reconfirms FY22 guidance for revenue of $40 million to $43 million and underlying EBITDA of $5 million to $5.5 million before the costs associated with the investment required to execute the Vodafone agreement.

CCG shares were trading 10 per cent higher at 11 cents at 1:14 pm AEDT.

CCG by the numbers
More From The Market Herald
Ballymore Resources (ASX:BMR) - Non Executive Chairman, Nick Jorss

" Ballymore Resources (ASX:BMR) intersects significant assays at Seventy Mile Mount

Ballymore Resources (ASX:BMR) has intersected significant assays in its initial drilling program at the Seventy Mile…

" Ballymore Resources (ASX:BMR) begins stage one drilling at Ruddygore

Ballymore Resources (ASX:BMR) has begun stage one drilling at the Ruddygore Prospect in North Queensland.

" Ballymore Resources (ASX:BMR) confirms displacement of Duffer lode at Dittmer mine, QLD

Ballymore Resources (ASX:BMR) has confirmed through diamond drilling that the historic Duffer lode at its Dittmer…

" Bannerman Energy (ASX:BMN) completes $40.7m institutional placement

Bannerman Energy (ASX:BMN) has raised $40.7 million via institutional placement, with the funds to be used…