Acquisitions have been good for telco Vocus Communications.
The telecommunications player just posted a 94.9% rise in net profit to $47.2 million for the six months to December. Revenue was up more than 400% to $885.9 million.
A short time ago, its shares were up 10% to $4.845.
The company says the record result was achieved through a combination of organic growth, a full six month contribution from the merger with M2 Group and an initial contribution from the acquisition of Nextgen Networks, completed in October last year.
The numbers for the six months to December:
CEO Geoff Horth says the company’s NBN market share increased to 7.8% from 6.4 despite fierce competition.
“The rollout of fibre in both Australia and New Zealand is an extremely positive opportunity for Vocus, with similar margins to copper broadband and significantly lower churn from the enhanced on-net customer experience,” he says.
Since July 2015, Vocus has completed a $1.2 billion merger with Amcom, then announced the $3.8 million M2 merger and $807 million Nextgen acquisition.
The Nextgen acquisition completed in October expanded the company’s fibre network to 30,000 kilometres across Australia. The company is also building an undersea high speed data cable between Australia and Singapore.
Today Vocus signed a 15-year, $20 million deal with Superloop, which owns and operates over 540 kilometres of fibre networks in Australia, Singapore and Hong Kong.
The agreement sees Superloop working with Vocus to upscale metro, national and international capacity.
Vocus today confirmed full year guidance of underlying EBITDA in the range of $430 to $450 million.
The company declared a fully franked dividend of six cents a share.