Vonex’s latest results highlight record revenue

Vonex ASX VN8 March 2022 record revenue
Vonex has reported a 96% rise in quarterly revenue compared to a year ago.

Vonex (ASX: VN8) has released its March quarter results this week, outlining record revenue achieved through an overall increase in business activity.

The award-winning telecommunications service provider has seen its quarterly revenue spike to $10.2 million, up 96% year on year.

Vonex managing director Matt Fahey said the results indicate the efforts of the company’s growth strategy.

“We are pleased to report our continued delivery of our three-pronged growth strategy, focusing on growth in retail, in 2SG Wholesale and through targeted acquisitions,” he said.

“Vonex remains focused on a proactive and disciplined merger and acquisition (M&A) growth strategy, targeting profitable IT and telco businesses that offer potential for growth in revenue, profit and earnings per share.”

Vonex’s wholesale division continues to rise thanks to a leading product suite and investment in a world-class platform and user experience.

Annualised recurring revenue is up a significant 102% year on year, rising an estimated $35 million as at 31 March 2022.

Over 2,000 former MNF Direct Business customers have transitioned to the Vonex and PBX platform, with Vonex hoping to have all Voiteck customers moved to its network by the end of FY2022.

“We continue to see a positive outlook for growth as the company’s customer base expands driven by market tailwinds,” Mr Fahey said.

In January 2022, the company completed its acquisition of Voiteck, an established provider of voice and internet services to small to medium enterprise (SME) customers in South Australia.

As the company continues to grow, it says it will advance M&A pipeline opportunities in a bid to “expand Vonex’s customer base, provide geographic presence in new markets and boost cross-sellable product diversity to drive growth in average revenue per user”.

Vonex retail business continues to soar

Following on from completing its acquisition of the Direct Business operations from MNF Group in August 2021, the company continues to see growth in contracted revenue through new and existing SME customers.

After record levels of growth in revenue through February and March, Vonex’s total contract value for new customer sales grew to $2 million, up 61% year on year thanks to increased business with SMEs. Quarterly cash receipts of $8.96 million also indicate an increase of 117% year on year.

The company now holds more than 100,000 active users registered on Vonex’s cloud-based private branch exchange phone service after its acquisition of the Direct Business from MNF Group and Voiteck. 

Wholesale growth not slowing down

Vonex’s wholesale division showed promise throughout the March quarter, with revenues for NBN with 4G backup rising by 31% year on year.

Its division continues to provide strong sales increases as a result of the company’s successful execution of its cross-sell/up-sell strategy.

With the company delivering v1 of Fusion, its new platform facilitating automatic ordering and management of mobile services for wholesale customers, Vonex is looking forward to providing new features such as improved fleet management for clients with multiple services and controls around service suspension to help with excess usage and prevent bill surprises.

Vonex tech division secures Harbour trust contract

During the recent quarter, Vonex won a contract with Sydney Harbour Federation Trust, an Australian Government agency rehabilitating former Defence and other Commonwealth lands around the Harbour area.

Vonex will build a bespoke emergency public announcement system covering Cockatoo Island, considered a UNESCO World Heritage Site in Sydney Harbour.

This system will use SIP paging technology and 24-core fibre optic cabling to rapidly engage rangers and staff on the island with messaging in the event of emergency.

The contract is valued at $150,000 and the current phase represents stage two of the project, with potential for further work in future stages, a positive for Vonex.

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