The MNF Group Ltd (ASX: MNF) share price has been a solid performer again on Tuesday.
In afternoon trade, the VoIP network provider’s shares are up 5% to $5.60.
This means the MNF share price is now up almost 14% since the start of the week.
Why is the MNF share price charging higher today?
Investors have been buying MNF’s shares today following the release of a business update.
According to the release, the company has been working hard preparing for its expansion into the Singapore market.
It is currently in the process of conducting its final technical trials with several customers, before officially going live in the market on 1 July. This is pending final regulatory approval.
This may be the first of a number of expansions in the near future. In February, management revealed that it has been completing due diligence to assess the next Asia-Pacific market to expand into. At that point, it had six possible target countries shortlisted.
MNF also confirmed that it is on target to achieve the top end of its earnings guidance in FY 2021. This guidance is for operating earnings of $40 million to $43 million for the 12 months ended 30 June.
It commented: “Business performance in the last quarter has been solid, and after receiving preliminary financials overnight for the month of May, the company now expects FY21 EBITDA to be within the top half of the guidance range provided. This is based on the performance of the company over a number of months including the latest results for May, the business has greater confidence in earnings projections as the end of the financial year approaches.”
Following today’s gain, the MNF share price is now up an impressive 27% since the start of the year. This compares favourably to a 9% gain by the S&P/ASX 200 Index (ASX: XJO).