Profit turnaround for 5G Networks

ASX-listed 5G Networks has reported a financial turnaround for the half-year ended 31 December 2024, with underlying earnings before tax (EBITDA) rising 150 per cent to $979,000.

The company posted a profit after tax of $6.3 million, a marked improvement from the $14.2 million loss recorded in the corresponding period last year.

Revenue meanwhile grew 18.1 per cent to $26.5 million, driven by strong performance across its key business segments.

"Revenue growth was experienced in all key segments, with cloud up 20.5 per cent, data centre up 53 per cent and managed services up 43 per cent," Hugh Robertson, non-executive chairman of 5G Networks, said.

The company's financial position was bolstered by the resolution of an uncertain tax position related to prior years' tax losses.

This resulted in a $10.06 million reduction in income tax provision, recorded as a credit to income tax expense during the period.

Despite the profit boost, the results included a $3.3 million loss on re-measurement of assets held for sale.

This followed the company's announcement in November 2024 that it would not proceed with the previously proposed sale of its primary operating subsidiaries to entities associated with managing director Joe Demase.

The company maintained a strong cash position of $58 million at 31 December 2024, though this was lower than the $64.9 million reported at 30 June 2024, partly due to an on-market share buyback that saw 33.4 million ordinary shares acquired and cancelled at a cost of $4.99 million.

In a move to strengthen its cybersecurity capabilities, the company announced it had gained control of AUCyber Limited in February 2025, acquiring 50.71 per cent of its ordinary shares.

By the close of the takeover bid on 17 February, 5G Networks had secured 89.68 per cent of AUCyber's shares.

"The strategic rationale for the acquisition of AUCyber is to strengthen the group's cyber security service and product offerings and complement the group's security shift business," Joseph Demase, managing director, said.