Ann: Half Year Results - Presentation, page-36

Quite volatile after a big jump on Friday with some profit taking today. Still massively undervalued and worth will north of $2 if they achieve their target of 10m EBITDA in a year or two. This update from the company was particularly assuring to me.




ASX Announcement 20 December 2018

Strong 5G Networks Q2 performance secures $11m of new and retained revenue.

5G Networks (ASX:5GN, the Company) is pleased to announce that since the acquisition of Anittel and Hostworks from Inabox in August 2018, the Company has now won a number of national deals delivering over $5m in new revenue, whilst re-signing all key customers out of contract, resulting in over $6m in retained revenue.

Chief Marketing Officer, Glenn Flower highlighted that he was delighted with the quarterly results as the wins reinforce the Company’s strategic proposition for offering a market leading customer experience across platforms and services within the digital ecosystem.

“Our strategic vision and competitive advantage is centred on our capability to support and manage our customers through their digital transformation to achieve successful business outcomes. This seamless experience is now integrated across data connectivity, cloud and managed services. Certainly, our strengths are founded on our people and their expertise; we have been trusted in delivering digital services and innovation for more than 20 years and thisexperience is market leading.”

The recent wins have driven new revenue as a result of meshing new solutions such as data connectivity with managed services. Having recently won significant national deals for data networks in addition to several new enterprise and government deals for cloud, hardware and Managed IT (+$5m), the Company is successfully leveraging the market experience and capabilities of both Anittel and Hostworks.

Hostworks operations continue to leverage its rich heritage in digital platform hosting and cloud services. Widely recognised as a market leader in delivering and managing cloud services, the Hostworks expertise and capability is now positioning 5GN as one of Australia’smost experienced managed cloud providers.

Managing Director of 5G Networks, Joe Demase stated;

“Since completing the acquisition of both Anittel and Hostworks from Inabox in August 2018,we have been able to unlock and operationalise the inherent values of these businesses, in particularly Hostworks. Customers are transitioning faster than ever to the cloud, allowing us to address this demand through the Hostworks’ and 5GN cloud and data connectivity capabilities.”

Lots of volatility with a huge jump up on volume on Friday. I suppose some investors/traders taking profits today. That said it still looks massively undervalued if they achieve that 10m EBITDA in a year or two. If successful I would value it around $2.50. Looking forward to the next update.