Swift Networks reports doubled earnings in first half-year results

Swift Networks ASX SW1 financial results 2018

Telecommunications and content solutions provider Swift Networks (ASX: SW1) has doubled its earnings over the past year, according to initial results for the first half of fiscal 2018.

The company reported in its half-year results, which remain preliminary and unaudited at this stage, that earnings before interest, tax, depreciation and amortisation (EBITDA) of A$1 million were up more than 100% on the first six months of fiscal 2017.

In addition, the company saw a 32% rise in revenue growth compared to last year, of $10.4 million.

Swift attributed this to the traction it has been gaining with new and existing clients across its target markets, which comprise a diversified range of sectors including resources, offshore energy, hospitality, student accommodation and aged care.

Swift noted that a number of new contracts and partnership wins secured in the first half-year have not yet been recognised and are set to result in the second half-year looking “increasingly promising”.

Recent contract wins have included multi-year deals with Pilbara Minerals (ASX: PLS), Talison Lithium and Altura Mining (ASX: AJM) to provide services and entertainment content to lithium mine camps in Western Australia.

The company also inked a deal with Oz Minerals (ASX: OZL) in November for its Carrapateena copper-gold project in South Australia for an initial three years.

According to Swift, its continued focus on cost controls has driven the company’s gross profit margin up to 39%, up 7% compared to a year ago, while its EBITDA margin is up to 9.9% (from 6.5% in the first half of fiscal 2017).

The company also reported strong growth in cash generation, with operating cash flow in the last quarter (October to December 2017) increasing by a massive 303% compared to the September 2017 quarter, to $1 million.

Swift’s cash position is currently sitting at $4.1 million, up 58% year-on-year.

“We look forward to enhancing our offering and expanding our customer base further in 2018 as we continue to execute our growth strategy,” Swift chief executive Xavier Kris said.

Shares in Swift were up 7% on the announcement by afternoon trade on Wednesday.

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