Why the Uniti (ASX:UWL) share price just broke its record high?

The Uniti share price is surging higher today as the company announced a strong half yearly report. We take a closer look.

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The Uniti Group Ltd (ASX: UWL) share price is climbing strongly today as the company announced its half-year results. Shares in the telecom company surged to 5.82% today, rising to a new all-time high of $2.11. At the time of writing, the Uniti share price has retreated back to $2.08.

The company operates under three business units of wholesale & infrastructure, consumer & business enablement, and specialty services. Uniti currently boasts a market cap of 1.412 billion.

Uniti reports record results

The Uniti share price is rising strongly today after the company posted record results across the board. Uniti delivered record numbers in every key financial measure in the half-year report. Moreover, Uniti claims that the results position the business for an acceleration in long term organic growth. This is due to a large proportion of results already being ‘locked in’ by the growing contracted portfolio.

Regarding the company’s financial performance, there was a 148% increase in revenues against the prior corresponding period (pcp). As such, revenue for the period stood at $54.6 million. This takes the company’s revenue run rate at the end of December 2020 to a total of $200 million.

Remarkably, earnings before interest, taxes, depreciation and amortisation (EBITDA) saw an even larger rise. Overall, EBITDA grew by 307% to $29.3 million. This was aided by the impressive operating free cash flow result of $18.3 million, making up 62% of EBITDA.

After the first half of FY21, Uniti now holds $45.5 million in cash. Notably, this is before the receipt of its $20 million share purchase plan undertaken in January.

Other highlights

Over the half, Uniti released a number of significant announcements. Namely, 3 acquisitions including OptiComm, Harbour ISP, and the Telstra Velocity network assets.

Moreover, the company claims that all three of its business units are benefiting from strong tailwinds. Including greater digital services uptake, consumption, technology, and strengthening residential property markets.

Management comments

Uniti’s CEO, Michael Simmons, said of Uniti’s H1 FY21 performance:

We are privileged to be operating in a segment of the telecommunications industry experiencing once-in-a-lifetime favourable market and economic conditions and investing in fibre infrastructure, which delivers a highly demanded essential commodity to consumers and business, which is able to accommodate very long term demand growth with minimal incremental capital or operating expenditure.

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