This morning 5G Networks Ltd (ASX: 5GN) released its results for the financial year ending June 30, 2019. Below is a summary of the results with comparisons to the prior year.
- Sales of $51.6m, up 846%
- EBITDA (operating income) $320,000, compared to $225,000
- EBITDA 'before acquisition and shares options costs' of $3.2m
- Net loss $4.14m, compared to $325,000
- Basic earnings per share loss of 7.7c
- 1 cent per share maiden fully franked dividend
- 3 acquisitions completed over FY 2019
- Now has 2,500 enterprise customers
- Expects "positive growth to continue throughout FY20"
- Cash on hand of $6.7m, bank debt $3.8m
5G Networks shares are down 4.6% to 92.5 cents today after the cloud services and data centre business reported a mixed result on the back of a busy year of acquisitions.
Today the group has a market value around $58 million which looks reasonable given its sales growth and positive EBITDA with potential to turn profitable into the future.
It operates in a competitive and fast-evolving internet services space though with bigger players like Telstra Corporation Ltd (ASX: TLS), Vocus Group Ltd (ASX: VOC) and TPG Telecom Ltd (ASX: TPM) all operating in similar areas.
The shares hit as high as $1.66 in June 2019, but have since tumbled as sentiment around the business swings wildly in part due to the unknown results of its aggressive growth strategy.
