Brisbane provider doubles profit in first public result

Recently floated solutions provider Over The Wire has more than doubled its net profit in its first public financial report.

For the half-financial year ending 31 December, the Brisbane-headquartered company's net profit hit $1.4 million, up $783,000 from the same half the previous year. 

Revenue for the six-month period was also up by 45 percent to $11 million.

The company offers data centre co-location, hosted services and managed IT service solutions. OTW runs two data centres in Brisbane, with 120 racks in its primary facility.

OTW’s networking business was still the biggest earner with $4.9 million. This includes OTW’s specialty – supplying customised session initiation protocol (SIP) voice and WAN solutions.

Voice solutions was the biggest in terms of growth, adding an additional 73 percent in revenue to reach $3.5 million.

Growth was underpinned by two big acquisitions last year. OTW acquired Gold Coast VoIP provider Faktortel for $5.3 million in July and Brisbane-based data centre and enterprise hosting business Sanity for $3.5 million.

OTW attributed the growth in voice solutions to being able to cross-sell into the Faktortel and Sanity client bases. The Faktortel acquisition also allowed OTW to gain a stronger foothold in NSW and Victoria.

Managing director Michael Omeros said the company was well-positioned to continue its expansion outside Queensland.

“We are pleased with the performance of business over the last six months,” he said. “Together with listing in December 2015 and completing two acquisitions, we have been able to maintain strong organic growth.”

OTW floated on the ASX in December, offering $10 million of shares at $1 dollar each. Shares were trading at $1.16 at the end of trading on Tuesday 23 February.

OTW expects revenue for the entire 2016 financial year to be $22 million, which would be a 36 percent increase.