MNF Group’s direct business sells cloud phone, internet and mobile services directly to small- and medium-sized enterprises and residential customers in Australia.
Global Growth Ahead For MNF Group
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MNF Group delivered significant growth in its global wholesale business over the first half with expansion in Singapore an upcoming catalyst
-Impressive growth in core telco business
-Singapore expansion a key catalyst
-Domestic wholesale the soft area
By Eva Brocklehurst
MNF Group ((MNF)) has entrenched its lead as a provider of critical voice services for the telecommunications industry, delivering significant growth in global wholesale business over the first half.
Canaccord Genuity asserts the strength of the wholesale business was clearly evident in the first half and growth in revenue from this source helped propel operating earnings (EBITDA) growth of 17% despite flat revenue.
MNF Group has posted impressive profit growth for H1 FY21 despite no significant increase in revenue, showing a 10 percent increase in gross margin to nearly $50 million.
In the company’s latest ASX release, MNF reported an EBITDA of $19.6 million, a 16 percent year-on-year increase, with an after-tax net profit of $8.4 million, a 30 percent increase.
As part of a strategic review of its direct business, MNF divested itself of Pennytel, selling the subsidiary to one of its domestic wholesale customers, Macarthur Telecom. The agreement enables MNF to continue to realise benefits of the Pennytel business through an ongoing agreement with Macarthur Telecom to continue to grow the customer base on MNF s wholesale enablement service, according to MNF Group.