- Uniti Group (UWL) has marked the end of its official ASX quarterly reporting duties with record cash flow over 2020’s concluding quarter
- Record net cash flow figures represent a 53 per cent increase on the previous quarter and a 544 per cent boost on the prior financial year
- All up, the company ended the quarter with roughly $45 million sitting in cash reserves, however, its net debt came in at approximately $116 million
- Unit’s CEO described the quarter as a remarkable one for the company
- Uniti shares are trading 3.72 per cent lower following the release of the report, trading at $1.81
Uniti Group (UWL) has marked the end of its official ASX quarterly reporting duties with record cash flow over 2020’s concluding quarter.
The financial and operational update for Q2 Fy21 revealed Uniti achieved a record net operating cashflow of $16.1 million, representing a 53 per cent increase on the previous quarter.
It marks an impressive 544 per cent boost on net cash flow for the prior corresponding period of FY20.
UWL noted this quarter was also it’s first paying income tax, which it says further illustrates the scale of the quarter-on-quarter growth it has accumulated after incurring the approximate $2 million expense.
Free cash flow was up 64 per cent on the prior quarter, clocking in at $11.3 million all up.
The company ended the quarter with roughly $45 million sitting in cash reserves, however, its net debt came in at approximately $116 million.
In terms of key growth-related spending, UWL says it shelled out roughly $4.2 million as part of the rollout of its Fibre-to-thePremises (FTTP) network, which it recently acquired in a $140 million deal for Telstra’s Velocity assets.
According to UWL management, its other acquisitions of OptiComm and HarbourISP have performed “above expectations” to date.
Both of these buys were completed during the quarter, with UWL advising both integrations are sitting on or ahead of schedule.
The quarter included only two months worth of earnings from HarbourISP, one month from OptiComm, and one week from the Telstra Velocity assets, leaving UWL with expectations of further strong cash flow figures down the track.
This is the last Appendix 4C that UWL will have to submit, having now submitted reports for eight quarters since its listing in February 2019. Uniti says its half year and full year financial reporting obligations will remain unaltered.
“What a remarkable quarter it was for Uniti Group,” Uniti Managing Director Michael Simmons declared.
“Having finally secured the OptiComm business together with the HarbourISP business and the Telstra Velocity assets, cementing Uniti’s position as Australia’s largest private owner-operator of greenfield FTTP networks & the
pre-eminent challenger in greenfield FTTP markets,” he explained.
“With our two-year anniversary of ASX listing looming next month, the team at Uniti is most proud of the highly cash generative, privileged infrastructure business we have built over this time,” he concluded.
Uniti shares are trading 3.72 per cent lower following the release of the report, trading at $1.81 at 1:57 pm AEDT.