The Over The Wire Holdings Ltd (ASX: OTW) share price came under pressure on Thursday following the release of the telecommunications, cloud and IT solutions provider’s full year results.
Its shares ended the day almost 7.5% lower at $4.28.
How did Over The Wire perform in FY 2019?
For the 12 months ended June 30, Over The Wire delivered a 49% increase in total revenue to $79.6 million, a 64% jump in EBITDA to $20.1 million, and a massive 91% lift in NPATA to $13.1 million.
Whilst all its segments experienced strong demand from customers in FY 2019, the key driver of growth was its Cloud/Managed Services segment. It reported a whopping 217% increase in revenue to $23 million.
Supporting this growth was its key Data Network segment, which reported a 26% increase in revenue to $37 million.
Rounding off the result, the Voice segment posted a 17% lift in revenue to $16.4 million and its Co-Location segment reported an 11% increase in revenue to $3.2 million.
Managing director, Michael Omeros, revealed that he was very pleased with the company’s performance in FY 2019.
He said: “We are delighted to deliver another positive result in FY19. We remain focused on delivering organic growth through geographic expansion and market penetration, complemented by quality acquisitions. Industry tailwinds in SD-WAN, Hosted Voice and Cyber Security provide a positive outlook for future growth and Over the Wire is well positioned to take advantage. We are excited by the potential opportunities for growth and remain committed to delivering on our strategy.”
Management remains confident in its outlook, advising that the “business performance is tracking well against our strategy and we continue to generate positive operational cash flow and maintain a strong balance sheet.”
It believes Over The Wire remains well positioned to continue to deliver organic growth and pursue further accretive acquisitions and is “confident that it will achieve strong growth in FY20 and continue to deliver sustainable profit growth for shareholders.”
Over The Wire wasn’t the only company in the telco sector reporting its result today. Telco giant Telstra Corporation Ltd (ASX: TLS) reported a full year result in line with its guidance this morning.
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Over The Wire Holdings Ltd. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia has recommended Over The Wire Holdings Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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