Vonex debuts first full year profit since ASX listing

With revenue rocketing 84% for the 2022 financial year ending June (FY2022), telco Vonex (ASX: VN8) has achieved its first full year profit since listing on the ASX.

The company’s sales revenue for FY2022 soared to $33.6 million – up 84% on $18.3 million in FY2021.

Vonex non-executive chairman Nicholas Ong said the company’s focus on organic and disciplined merger and acquisition growth underpinned the higher revenue.

Annual recurring revenue had hit $36.2 million at the end of June, which was 97% higher than June 2021.

Strong sales propelled the maiden profit of $330,552 for the group, which was substantially higher than the almost $4 million loss in the previous corresponding period.

Other contributors to the first profit were increased scale, and tighter cost controls.

Underlying EBITDA of $6.6 million for the period was much higher than the $500,000 achieved in FY2021.

“While we are proud to have delivered these financial milestones for shareholders, we remain firmly focused on Vonex’s next growth horizons as the company pursues significant opportunities to gain scale in the Australian telecommunications industry,” Mr Ong said.

Successful acquisitions drive growth

During FY2022, Vonex boosted its operations with the acquisition of Symbio’s Direct Business in August 2021 and Voiteck in January this year.

Mr Ong said since taking over the Direct Business, 5,250 new small-to-medium clients were successfully integrated into the Vonex group.

“Our subsequent acquisition of Voiteck in January 2022, an established provider of voice and internet services to SME customers, brought Vonex a physical presence in South Australia and a stronger platform to capture more growth opportunities,” he added.

Wholesale division continues expanding

Vonex’s wholesale division continued expanding in FY2022.

NBN sales increased 22%, while IP Voice sales were 37% higher than the previous year.

“This reflects the stronger average revenue per user (ARPU) that we are realising through the 100,000-plus extensions now active on the Vonex platform,” Mr Ong said.

More partnership

As part of its plans to broaden its services and offerings, Vonex partnered with More Telecom in June to become an exclusive provider of hosted PBX services.

Under the deal, Vonex will deliver a hosted PBX and IP telephony enablement platform for More’s new and existing SME customers.

“We are particularly excited by this opportunity as More is part-owned by its strategic partner – Commonwealth Bank of Australia (ASX: CBA),” Mr Ong said.

He added the company was “excited” to provide a highly scalable platform to support More’s rapid growth.

Outlook

As FY2023 advances, Mr Ong said the company will continue to focus on expanding its market presence.

Part of this will involve realising cross-selling opportunities.

“We will continue to pursue new opportunities to increase the value of our combined business, by targeting growth in lead generation, brand awareness and ARPU.”

Mr Ong added the company will also progress its disciplined merger and acquisition strategy throughout FY2023.

Companies targeted will be IT and telco businesses that can expand Vonex’s customer base, geographic presence and product suite.

“Vonex continues to see a positive outlook for growth in sales as the company’s customer base diversifies and expands,” Mr Ong said.