Comms Group secures global supply deal with Vodafone

ASX-listed cloud communications provider Comms Group has secured an agreement with Vodafone Global Enterprise to provide wholesale telecommunications services.

Comms Group will provide Microsoft Teams calling (direct routing) services, SIP trunking, value added services (including but not limited to call recording, call reporting, contact centre, teams to text messaging/SMS integration) and hardware-based voice solutions as part of the deal. Some professional support services are also included.

The deal is for an initial three-year term and can be renewed annually, but also allows Vodafone to cancel on six months' notice. Comms Group can also cancel on 18 months' notice.

“We are extremely delighted to partner with Vodafone Global Enterprise to support Vodafone’s moves into offering the very best teams calling unified communications experience globally with extensive coverage to service the world’s largest enterprises,” Comms Group chief executive and managing director Peter McGrath said.

“We have a close and growing relationship with Vodafone and are pleased to be able to work alongside them providing the latest generation unified communications services across the globe.”

UK-headquartered Vodafone Global Enterprise is the global enterprise division of Vodafone Business and the Vodafone Group PLC, which specialises in IT and telecoms services for large corporate customers.

Comms Group’s announcement said revenue will be dependent on the number of users onboarded, but management expects an additional $50 million in annualised revenue and annualised earnings in the coming years.

The company also expects to invest in mobilisation costs, staff deployment and contract establishment related costs, anticipating a hit to its earnings during the agreement’s first year.

Some new additions expected are additional sales and operations resources to support the Vodafone contract internationally, including the Northern Hemisphere, and upgrades and enhancements, where required, to Comms Group’s network and internal operational support systems.

Comms Group also said in the announcement that it reconfirms its FY22 guidance for revenue of $40 million to $43 million and underlying earnings of $5 million to $5.5 million before the costs associated with the investment required to execute this agreement.