- Uniti Group (UWL) has reported an 880 per cent increase in net operating cashflow from just $1.1 million in Q1 FY20 to $10.5 million in the Q1 FY21
- Uniti also detailed $6.9 million in free cash flow — an impressive 771 per cent increase from Q1 FY20 and 13 per cent increase from the previous quarter
- The results were delivered without the contribution of new acquisitions despite Uniti sitting in the middle of a takeover bid with OptiComm and First State Superannual
- The broadband connections provider owns three businesses with the stand-out being its wholesale and infrastructure unit which contributed around $6 million in EBITDA
- Uniti ended the September quarter with around $277.5 million in cash and no outstanding debt
- Uniti is trading a slight 2.02 per cent higher for $1.27
Wireless broadband connections provider Uniti Group (UWL) has reported an increase in net operating cashflow for the September quarter.
While net operating cashflow only increased by around $400,000 from $10.1 million in Q4 FY20 to $10.5 million in Q1 FY21, the latter figure represents a staggering 880 per cent increase from the first quarter of FY20.
Furthermore, free cash flow (operating cashflow after capital expenditures) for the September quarter came in at $6.9 million — a 13 per cent increase from the previous quarter and a 771 per cent increase on Q1 FY20.
"The continued expansion of our Net Operating Cash Flow and Free Cash Flow metrics again illustrates the remarkable cash generation credentials of the business we have assembled and integrated in just over 18 months since Uniti’s IPO in February 2019," Managing Director and CEO Michael Simmons said.
Uniti is particularly proud that these results have been delivered solely from 'organic activities,' with no new acquisitions contributing to the result.
Of course, the company did announce its intention to acquire fellow ASX-listed telco, OptiComm (OPC) for $532 million back in June. However, the deal has seen some back and forth in the last two months especially when OptiComm received a surprise takeover bid from First State Superannual, which valued OPC at roughly $608 million.
"These results are delivered for our shareholders notwithstanding the company’s active pursuit of the OptiComm transaction, other strategic opportunities, including further complementary acquisitions as well as achieving the anticipated final approval of our functional separation undertaking," Michael stated.
Uniti operates three core business units, which include wholesale and infrastructure (W&I), speciality services, and consumer and business enablement.
A stand-out during the quarter was the wholesale and infrastructure unit which contributed around $6 million in earnings before interest, taxes, depreciation and amortisation (EBITDA). On an annualised basis, this represents 5.4 times W&I that are now fully integrated.
Uniti did, however, spend above-budget on deploying 3060 additional Fibre-to-the-Premises (FTTP) connections in newly completed developments. The company spent around $3.1 million on the W&I unit.
Pleasingly, Uniti ended the quarter with about $277.5 million in cash and no debt.
Uniti is trading a slight 2.02 per cent higher for $1.27 at 3:04 pm AEDT.