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Swift Networks reveals 167% increase in EBITDA for December half

News of recent contract wins has been followed up with profit growth results.
growth concept shown by share price chart going up
The company recently acquired the Medical Media business

Swift Networks Group Ltd (ASX:SW1) has increased its EBITDA by 167% to $2.8 million for the December half according to preliminary unaudited accounts.

The company continues to capitalise on the operating leverage inherent to its business model, delivering substantial profit margin expansion in the half year to December 2018.

The EBITDA margin increased to 22% as a result of the business scaling up with revenues for the half increasing 21% year-on-year to $12.6 million.

READ: Swift Networks grows resources sector presence with multiple contract updates

Swift’s CEO Xavier Kris said: “Swift’s underlying business continues to grow from strength to strength.

“We continue to deliver on our promises to our clients, our staff, our partners and our investors.

“Our commitment is reflected in the performance of the business from both an operational and financial standpoint across our Australian and international target markets, in line with the strategy communicated at the time of listing.

“We are particularly encouraged by the ability to further monetise our deployed assets and generate advertising revenue streams through our acquisition of the Medical Media business.

READ: Swift Networks Group Ltd plans swift media transformation

“We look forward to delivering continued growth in diverse, scalable, recurring earnings both directly and through our partner network in 2019.”

Positive cash flow of $1.6 million adds to cash position

The company provides fully integrated digital entertainment solutions to the resource, hotel, lifestyle village and aged care sectors.

Swift’s sustained revenue and profit growth has translated into positive net operating cash flow of $1.6 million, up 25% compared to the prior June half.

This positive cash flow has facilitated re-investment across the Swift business.

Swift’s cash position (net of bank debt) as at 31 December 2018 was $2.7 million, up 103% year-on-year, with $3 million in undrawn debt facilities providing significant balance sheet flexibility.

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