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  • Internet and IT specialist Spirit Telecom (ST1) reveals it has delivered “transformational growth” over the last quarter of FY20
  • Revenue achieved in quarter four was up 14 per cent to $11.9 million compared the third quarter
  • More broadly, Spirit’s revenue has more than doubled since this time last year
  • Spirit says the figures show just how far the business has come in the last 12 months after it completed eight acquisitions
  • Ultimately, the revenue stats don’t include earnings from Spirit’s latest VPD Group acquisition, which was completed on July 1
  • Further, the company is expecting to report underlying earnings before interest taxes, depreciation, and amortisation (EBITDA) of between $3.5 million and $3.8 million in FY20
  • Over the June quarter, Spirit brought a new NBN range to its digital sales platform and launched its first-ever national advertising campaign
  • At the end of the period, the company reported it had $14 million in cash and available debt to draw upon
  • Despite today’s positive announcement, Spirit’s shares are down 3.51 per cent on the market today and trading for 27.5 cents per share

Internet and IT specialist Spirit Telecom (ST1) said its delivered “transformational growth” over the last quarter of FY20.

Revenue jumps

Revenue achieved in quarter four was up 14 per cent to $11.9 million compared to the previous third quarter. More broadly, Spirit’s revenue has more than doubled since this time last year — in FY19’s final quarter, it posted just over $5 million in revenue, meaning it has seen a 133 per cent jump in quarter four of FY20.

All up, Spirit posted $22.4 million in revenue over the second half of FY20. Combined with the first-half results, this brings the company’s total fiscal year revenue to $34.9 million.

Spirit says the figures show just how far the business has come in the last 12 months after it completed eight acquisitions.

Ultimately, the revenue stats don’t include earnings from Spirit’s latest VPD Group acquisition, which was completed on July 1.

Further, the company is expecting to report underlying earnings before interest taxes, depreciation, and amortisation (EBITDA) of between $3.5 million and $3.8 million in FY20.

Meanwhile, Spirit’s Trident Technology Solutions business reported around $2.2 million in revenue back in June, which is up 17 per cent on the May statistics and 24 per cent compared to April.

Business to business

In the business to business (B2B) division, Spirit has also more than doubled its revenue compared to the first half of the financial year.

In FY20’s first half, the company posted $9.5 million in B2B revenue, but brought that up to $19.4 million by the end of the financial year. Significantly, more than half that revenue — $10.7 million — is classified as recurring.

Spirit says B2B revenue now accounts for 90 per cent of the company’s total revenue.

Spirit X platform

In addition, the company’s Spirit X Digital Sales platform, lauded as the biggest aggregator of B2B offerings on an online portal, has boosted organic growth. During the second half of FY20, over 12,000 users went through the platform.

Over the June quarter, Spirit brought the NBN Enterprise Ethernet (NBN EE) range to the platform, which expanded the platform’s market opportunity to cover 80 per cent of Australian business premises.

New advertising campaign

In the same period, Spirit also launched its first-ever national advertising campaign. This has brought record visitor numbers to the Spirit website.

The campaign is being promoted across outdoor, online and traditional media channels. Some of the advertising hosts include Sky News, Fox Footy, Channel 9, AFR.com and Triple M.

“Over the course of the past year, Spirit has evolved to become a Modern Telco, from solely being focused on high-speed internet to now providing a complete offering across Telco, Internet, Cloud, IT managed services and Cyber Security,” Managing Director Sol Lukatsky said.

“Our proven ability to identify right-fit acquisition targets, pay fair value and importantly integrate these skilfully and quickly– coupled with our expertise in sales and marketing – has been integral to our growth,” he added.

Cash reserves

At the end of the fourth quarter, Spirit has $14 million in cash and available debt to draw upon.

However, since the June quarter ended, $6 million was taken from that facility to finalise the company’s VPD Group acquisition, which went through on the first day of the new financial year.

Despite today’s positive announcement, Spirit’s shares are down 3.51 per cent on the market today, trading for 27.5 cents per share at 2:10 pm AEST.

ST1 by the numbers
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