Vocus Communications records growth ahead of M2 acquisition
Telecommunications company, Vocus Communications (ASX:VOC), has reported its results for the half-year ending December 31, 2015. In a statement on the ASX, the company mentioned that its net profit after tax (NPAT) amounted to $27.4 million, up 203 per cent since the same time last year.
The company stated its revenue was $176.3 million, up 181 per cent from last year, while its underlying EBITDA was $62.3 million, up 188 per cent from the first half of 2015.
In the ASX statement, the company said the “outstanding result” was the result of organic growth coupled with the acquisition of Amcom, which was completed in July 2015. It claimed the result represents a 68 per cent five-year compound annual growth rate in EBITDA.
“The interim results are particularly pleasing given that transactional activity can often distract from business operations. I would like to thank both teams that have remained focused on executing on our strategies,” incoming Vocus CEO, Geoff Horth, said.
Most recently, the company merged with M2 Group and as part of it, M2 Group CEO, Geoff Horth was appointed CEO of the combined entities, while Vocus CEO, James Spenceley, becomes the executive director of the merged companies and focuses on infrastructure strategy.
As the merger was completed after December 31 last year, the results of M2 were not part of Vocus’ half-year results.
M2 reported revenues of $707.4 million, up 29 per cent from the year before; an underlying NPAT of $55.1 million, up 17 per cent; as well as an EBITDA of $104.7 million, up 22 per cent from the first half of 2015.
The company added that M2 had growth which was supported by its acquisition of CallPlus in New Zealand (it completed this in June 2015) and that the business is on track to achieve its previously provided FY16 earnings guidance.
“We have combined two successful companies into a vertically integrated full-service telecommunications company and I am confident that under Geoff’s stewardship, the company will continue to go from strength to strength,” executive director and outgoing CEO, James Spenceley, said.
