Over the Wire posts 57% rise in revenue for 2018 financial year

IT and telecommunications company Over the Wire Holdings (ASX: OTW) has revealed a 57% increase in its full year revenue which hit A$53.56 million for the 12 months ending June.

This compares to full year revenue of $34.22 million achieved in 2017.

Meanwhile, earnings before interest tax depreciation and amortisation (EBITDA) surged 66% for the period to reach $12.26 million, compared to $7.37 million in 2017.

This underpinned a net after tax profit of $5.53 million, up 54% on 2017, which was $3.60 million.

Demand for Over the Wire’s products and services came from four primary areas with the Data Networks division delivering the highest annual growth of 85%, with revenue hitting $29.38 million, compared to $15.92 million the previous year.

Cloud and Managed Services experienced the second highest revenue increase for 2018, with the division pulling in $7.26 million this year, as opposed to 2017’s $4.85 million.

“We are delighted with our full year 2018 result,” Over the Wire managing director Michael Omeros said.

Meanwhile, earnings per share soared 53% to reach A$0.1263 per share for the 2018 financial year, with Over the Wire declaring a final dividend of $0.015 per share, giving shareholders a total $0.025 per share dividend for 2018.

“We have delivered strong results since the IPO and achieving over 50% earnings per share growth in the past 12 months endorses our strategy of delivering organic growth through geographic expansion complemented by quality acquisitions,” Mr Omeros said.

During the reporting period, Over the Wire upped its exposure in New South Wales and Victorian markets; although, Queensland remained the largest revenue contributor.

Western Australia supplied 1% to the company’s revenue, while South Australia put in about 4%.

The growth in these markets was achieve both organically and via acquisitions including the Telarus takeover in 2017, and the recently completed VPN Solutions integration, which contributed $7.7 million in revenue for 2018 and is expected to put more into the company pot in 2019 as the combined capabilities of VPN and Over the Wire drum up more business.

Over the Wire stated the business performance was “tracking well” against the company’s strategy to continue generating positive cash flow and targeting 20% year-on-year organic growth.

The company anticipates further organic growth and acquisitions in 2019.

Today’s positive financial results pushed Over the Wire’s share price up almost 20% to reach $4.20 by mid-afternoon.