Comms Group has released its financial results for the half year ended 31 December 2025 (1H FY26), reporting that it achieved record group revenue of $37.6 million compared to $27 million on the prior corresponding period (pcp), an increase of 39%.
The company also delivered its strongest underlying EBITDA result for a half year, recording $4.5 million vs $2.4 million pcp, up 87.3%.
Underlying NPATA increased to $1.8 million vs $0.9 million pcp, up 100%, while gross profit also increased 37% versus the previous period, to $17.8 million, up from $13.1 million.
The company's domestic (Australian) business is comprised of communications and collaboration services for SMEs, corporate and government clients, as well as secure managed IT solutions including cloud computing (IaaS) services for corporate and government.
The global business sees the company act as a global and wholesale unified communications provider for global enterprises and wholesale voice services for global telcos and application service providers.
Divisional revenue consisted of $7.5 million from the Global & Wholesale business, $10.9m from the Secure Managed IT Solutions business and $19.3 million from the Cloud Communications and Collaboration business, which includes TasmaNet.
Global & Wholesale and Secure Managed IT also recorded material increases in underlying EBITDA of 161% and 40% respectively.
Global and wholesale driving sales
The business achieved new business annual recurring revenue of sales contracts signed of $5.4 million, with all divisions seeing growth in new business sales in the half.
TasmaNet secured a major contract and expansion of its connectivity services with a key customer representing a Total Contract Value of over $1 million.
The Global and Wholesale UC business saw "significant new sales" in the half, with a total of $1.8 million in new ARR across countries across Asia Pacific including Australia, China, Fiji, Hong Kong, Indonesia, Japan, Malaysia, New Zealand, Philippines, Singapore, South Korea, Thailand, Vietnam; and in Europe, France, Germany, Ireland and the United Kingdom.
Approximately 80 Australian and international corporates ordered new services in 1H FY26 from the Global & Wholesale business either directly or via partner channels. These customers include global telecommunications carriers and UC providers, global banking, insurance and investment institutions, industrial & manufacturing, global medical technology operators, a US federal government agency and a consumer goods manufacturer.
Separately to these orders, Comms Group have also been advised of further key wins including global multi-national companies currently in the final contracting phase. These companies include two multinational banks, one headquartered in Europe and the other in the United States.
Global & Wholesale also has a "strong pipeline" of new sales, with the open opportunities pipeline exceeding $5 million in ARR.
TasmaNet transition set to be complete by end of FY26
The transition of TasmaNet into Comms Group, which the company acquired for $10 million in October of last year, has "progressed to plan" with the integration set to complete by the end of FY26.
All customers, including key Tasmanian government customers, are now transitioned across into Comms Group. Mainland customers have been novated across to both the existing Secure Modern IT Solutions and the Communications and Collaboration businesses where appropriate.
All key suppliers have also been novated and onboarded, with the focus now being to "optimise supplier costs across the Group, with a synergy plan well underway".
Comms Group also announced it had hired additional sales and marketing resources within TasmaNet and have established a "strong connection" in the local market through a range of events and targeted programs.
"We continue to see good opportunities for growth within the business through a mix of new business plus, upsell and cross-sell initiatives from our existing business units," the company stated.
The business said it is seeing "continuing strong organic growth opportunities", particularly in Global & Wholesale and Secure Managed IT and is also continuing to actively look at M&A opportunities.
Integration and rationalisation project begun
A "substantial" network and cloud platform integration and rationalisation project has commenced for the domestic businesses, which includes upgrading core capacity and capability with some one-off capex to being incurred in FY26.
Comms Group is consolidating its three domestic telco networks into a single national network, plus merging its two private compute (cloud) infrastructure platforms.
Current initial estimates are that this rationalisation project should save the company up to $2 million per annum in external costs, with the project expected to complete in Q4 FY26.
Within the Global division, the company also expanded its reach into new markets and added additional licences and carrier partners in key markets, including Vietnam and six additional European countries.
In addition, Comms Group announced it has laid the groundwork for expansion into further key countries with several licence applications underway, as well as additional carrier partners in existing markets to add greater capability, supply diversity and to lower the cost of supply.
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