- Spirit Telecom (ST1) has achieved strong revenue growth of 146 per cent to $14.3 million from January to April 2020, compared to the same period last year
- The internet services company is currently thriving during the COVID-19 pandemic as Australians are more reliant on high-performing internet
- Recurring revenue increased by 60 per cent to $8.6 million and B2B recurring revenue growth was up 92 per cent to $7 million
- Spirit credits the growth to its strategic offerings but also the recent acquisition of Trident Technology Solutions from which it has accessed aged care facilities and schools
- Later this month, Spirit is launching the NBN Enterprise Ethernet range which can reach over 500,000 businesses nationally
- Spirit is up 6.25 per cent and shares are trading for 17 cents each
Spirit Telecom (ST1) has announced a strong revenue and sales result for both the month of April and for the period between January and April 2020.
The internet and IT services company reported a total revenue of $4 million in April and a recurring revenue of up to $2.3 million for the same month.
Across the January to April 2020 period, Spirit achieved total revenue growth of 146 per cent to $14.3 million, while business-to-business (B2B) revenue growth was up 216 per cent to $12.4 million compared to the same period in 2019.
Recurring revenue also increased by 60 per cent to $8.6 million and B2B recurring revenue growth was up 92 per cent to $7 million. Further, solutions and project revenue also grew to $5.7 million.
"We are simply executing to strategy for our customers, who are demanding a bundled High-Speed Internet links & IT services in one offering and it’s working," Managing Director Sol Lukatsky said.
For the most part, companies in the technology and internet sector have been thriving during the COVID-19 pandemic as people are using their own internet more often for work or due to having more spare time.
With the recent acquisition of Trident Technology Solutions, Spirit has been able to tap into Essential Providers serviced by Trident with Schools and Aged Care providers taking up the Spirit Internet services as a cross-sell.
The Spirit Group's result is particularly pleasing, as Trident’s business is currently in its slowest quarter and is only generating 15 per cent of its revenue for the 2020 financial year.
Spirit's balance sheet is in a "very healthy position" with a mix of cash and debt of $14.8 million to be used for acquisitions and expanding its Spirit X Digital Sales Platform.
This platform will launch the NBN Enterprise Ethernet range to its partners and direct customers later this month. The NBN product can reach over 500,000 business locations nationally.
"This is a game-changer in terms of organic opportunity for Spirit," Sol stated.
Spirit is up 6.25 per cent and shares are trading for 17 cents each at 11:13 am AEST.