5G Network Reports Strong Q2 Performance

5GN

5G Networks Limited (ASX: 5GN) is a licensed telecommunication company based out in Melbourne, Australia providing a seamless digital experience to the customers across data connectivity, cloud and managed services in the business to business market. It is currently operating and maintaining an extensive high-speed data network across NSW, Victoria and South Australia and is rapidly deploying a nationwide MPLS network connecting all capital cities and major regional areas across Australia.

Today, 5GN announced its second-quarter performance for the year, securing $11 million of new and retained revenue. The company has won several national deals delivering over $5m in new revenue, while re-signing all key customers out of contract, resulting in over $6m in retained revenue. This is after the acquisition of Anittel and Hostworks from Inabox for AU$5.7 million in cash in August 2018. [optin-monster-shortcode id=”swikrbu1d9j9aq0o4cko”]

Inabox is a leading supplier of next-generation IT, cloud and telecommunications services to the Australian market incorporating three brands under it namely Telcoinabox, Hostworks, and Anittel. Both Anitell and Hostworks, are cloud specialist businesses providing services across Australia.

As per the management, the wins will reinforce the company’s strategic proposition for offering a market leading customer experience across platforms and services within the digital ecosystem. After the acquisition, the company has been able to unlock and operationalize the inherent values of those businesses, in particularly Hostworks. Customers are moving faster to the cloud than expected, enabling 5GN to take an advantage towards this high demand through the Hostworks’ and 5GN’s cloud and data connectivity capabilities.

The recent wins over data connectivity with managed services has resulted in the increase in revenue. By acquiring significant national deals for data networks in addition to a several new enterprise and government deals for the cloud, hardware and Managed IT (+$5m), the company has been successfully able to leverage the market experience and capabilities of both Anittel and Hostworks.

Hostworks operations continue to leverage its rich heritage in digital platform hosting and cloud services. Being recognized widely as a market leader in delivering and managing cloud services, the Hostworks expertise and capability is now positioning 5GN as one of Australia’s most experienced managed cloud providers.

Augmenting this customer demand, 5G Networks is now completing its national MPLS network which will support the Company’s unique proposition for connecting and managing the digital experience of its customers; a critical formula for achieving long-term business success.

On 4 December 2018, the company announced to retain a strong cash reserve and the completion of the acquisition process of Asia Pacific Telecommunications (APTel) from the Deague Group. On 19 October 2018, the company announced a new funding facility of $5.5 million with the Common Wealth Bank of Australia (CBA) to pay final payment of $3.5 million for APTel purchase, to consolidate all current lease obligations for $1 million, and to cover lease guarantee for $1 million.

Over the past six months, the scrip price has declined by 19.59%. The scrip is currently trading at 42 cents (as on the close of 20 December 2018). Today, the price soared by 7.7% with an increase of 3 cents over the previous close of 39 cents.


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