- United Networks (UNL) has reported positive earnings for the six months ending in December 2019
- The global roaming solutions provider saw a 417 per cent increase in sales revenue which came in at $7.25 million
- Net profits after tax was $2 million, while the company ended the half one period with $2.29 million in cash
- United Networks largely credits the results to the acquisition of Broadland, Symmetry Networks and Next Com
- The company expects organic growth to continue for the rest of the year despite the March quarter generally being a seasonal slump
- United Networks’ shares remain flat and trading for 4.1 cents each
United Networks (UNL) has achieved its first operating profit with an EBITDA results of $0.68 million in the six months ending on December 31 2019.
Sales revenue came in at $7.25 million which is a 417 per cent increase compared to the results reported 12 months ago.
Statutory revenue was also up from $6.7 million to $7.25 million.
Net profits after tax (NPAT) for the half one period was $2 million and the company’s cash position was at $2.29 million at the end of the period.
United Networks is a global roaming company that offers complete white label solutions for travel businesses and enterprises. With the support of over 600 mobile carriers globally and the world’s largest Wi-Fi network consisting of over 50 million hotspots in 180 countries, UNL allows you to stay connected for less.
The company largely credits its positive results to the acquisitions of three companies. These include Broadland Group, Symmetry Networks and Next Com.
These acquisitions aligned with the company’s strategy to increase recurring revenue. They are also highly EPS (earnings per share) accretive with low double-digit earnings growth expected over the 2020 financial year.
“United is now a global mobile service provider focused on growing partnerships combined with a local service provider focused on growing the recurring revenue stream,” CEO Victor Tsaccounis said.
The combination of the three businesses puts United in a strong financial position as the acquisitions were only finalised from December last year.
“In terms of operational achievements, in the Service Provider Business we continued to achieve organic growth as well as through acquisitions with $3.59 million in revenue yet to be booked from signed contracts under project management,” Victor continued.
Relating to its global eSIM business, United Networks also launched a new insurance partner offering in December with forward orders already booked.
Significantly, United Networks is the first Australian telecommunications provider to bring the global eSIM to market.
While the March quarter usually generates less cash due to the season, the company expects one or two further acquisitions before year’s end.
United Networks’ shares remain flat and trading for 4.1 cents each at 11:33 am AEDT.