MNF Group Limited (ASX: MNF) is a telecommunication company that provides cloud-based communication services with innovative software solutions. It operates globally with a smart network supported by new age solutions.
On 6 May 2019, Rene Sugo, Group CEO of MNF published US Roadshow Presentation which introduced two new products - UCaaS and CPaaS to enable interoperability of multiple communication channels.
CPaaS is a cloud-based software service for real-time communication like voice, video and messaging for apps and websites. Infrastructure integration of real-time communication to their products through websites and software developers without any further investment in underlying infrastructure.
UCaaS – a software service with voice, videos, collaboration, and messaging features in a single platform delivered through cloud services across multiple devices, it connects devices via cloud and software.
CPaaS and UCaaS also enable information sharing through exchange within the communication services. MNF asserts that telcos have not much invested in platforms like CPaaS and UCaaS, therefore, building telecom infrastructure and network will require a significant amount of capital expenditure.
MNFs customer includes big telecommunication companies from Gartner UCaaS magic quadrant like AT&T, NTT Group, Microsoft, Orange, BT, Verizon, Fuze and West etc., and are working on deployment in Asia Pacific region. A report published by Gartner forecasted 40% CAGR over the next four years for CPaaS and 12% CAGR over the next four years for UCaaS.
The company seems to be well positioned to leverage this growth through its significant presence in Australia, New Zealand and soon Singapore. It further confirmed that it could provide up to 30% and 80% of the value stack on CPaaS and UCaaS respectively, depending on the client.
MNF’s services include CPaaS – Calls and SMS, UCaaS – communication services and AI – chatbots for customer interactions and single point of contact to resolve concerns over capacity, reliability, scalability.
The MNF platform, CPaaS enables the delivery of Virtual Numbers, SIP trunks, SMS, porting to the infrastructure which later arrives at software whereas UCaaS delivers masks using MNF’s virtual numbers, calls via SIP trunks.
UCaaS eliminates the need for internal PBX systems in an enterprise and provides infrastructure like apps and software to replace hardware telephony. Call Analytics helps to initiate calls and passes geolocation through the unique virtual number which gets displayed on online advertisements resulting in customer calls.
MNF’s infrastructure and services include API, software, platform and operations continuously developing over the past 17 years. MNF also has Service Legal Agreements (SLAs) with infrastructure owners within a network of service providers across geographies.
MNF is committed to delivering capabilities with lower cost, flexible API, reputation and infrastructure. It aims to provide exceptional support and network services to enhance skills while expanding its geographic footprints in the Asia Pacific region.
FY19 Half Year ended, NPAT is down 49% from $6.1 million in 1HFY18 to $3.1 million due to investment and changing revenue mix. Revenues declined by 16% from $116.7 million to $98.1 million and EBITDA decreased by 16% to $9.8 million due to increased investment in product development and acquisition.
For Fiscal Year 2019, the company expects EBITDA to range within $27 million to $28 million and NPAT between $11 million to $12 million. EPS is expected to be within 15.0 cents to 16.4 cents in FY19 and 20.4 cents to 22.4 cents in FY20.
MNF closed at $4.250 on 6 May 2019, up by 3.406% from the previous close. The 52-week high and low value of the company’s stock was recorded as $3.51 and $6.10 respectively.
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