- Swift Media (SW1) has reported strong quarterly results with an increase in revenue of 23.4 per cent to $5.9 million and an EBITDA growth of 160 per cent for Q1 FY21
- Swift Media delivers premium entertainment, communications and advertising to various sectors
- The mining and resources division experienced a 50 per cent increase in revenue from Q4 FY20 and also brought in 12 new contracts worth $1.2 million
- However, the aged care division saw a 13 per cent decrease in revenue due to COVID-19 restrictions
- Despite this, Swift installed its Swift Plus system in 800 rooms across five aged care facilities to support connectivity and reduce isolation
- In terms of operating cash flow, the company burnt through less last quarter reporting $0.1 million spent as opposed to $1.5 million in the June quarter
- Swift Media ended the quarter around $1.9 million in cash reserves
- Swift is trading a healthy 17.7 per cent higher for four cents
Swift Media (SW1) has reported a quarter-on-quarter increase in revenue of 23.4 per cent to $5.9 million and an EBITDA growth of 160 per cent for Q1 FY21.
Swift Media is a specialist technology company which delivers entertainment, communications and advertising to the mining and resources, aged care, and health and wellbeing sectors.
The company's mining and resources division experienced a strong 50 per cent increase in revenue from Q4 FY20 and a 30 per cent increase over Q1 FY20. Further, Swift saw a 200 per cent growth in project revenue for mining and resources during this quarter.
Additionally, it welcomed 12 new contracts worth $1.2 million and delivered $1.8 million worth of jobs to companies like Rio Tinto (RIO), Atlas Iron and Howard Springs.
On the other hand, Swift reported a 13 per cent decrease in revenue from aged care which it attributes to ongoing COVID-19-related access restrictions.
In an attempt to support ongoing connectivity between residents and their families and reducing social isolation, Swift onboarded its Swift Plus system in 800 rooms across five aged care facilities.
Positively, earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 160 per cent year-on-year to $0.3 million.
Another major improvement is Swift Media's operating cash flow. Last quarter, Swift used $0.1 million which compares favourably to the $1.5 million burnt in the June quarter.
A big chunk of the June quarter's operating cash flow loss was due to staff redundancies and early termination of certain contracts.
Pleasingly, net cash from operations benefited from around $250,000 of Jobkeeper funding.
"It is encouraging to see that the great efforts we are making to strengthen and streamline Swift are beginning to deliver positive results. We remain focused on driving profitable sales, process improvements, enhancements in our delivery to customers, and the development of new product and infrastructure technologies," CEO Pippa Leary said.
At the end of the September quarter, Swift had around $1.9 million compared to just under $2.5 million in the prior quarter.
Swift's current focus is on expanding its health and wellbeing division, retaining and upselling mining and resources clients and discussions with potential and existing aged care clients.
Swift is trading a healthy 17.7 per cent higher for four cents at 2:52 pm AEDT.