OTW HY21 results show revenue over $50m with a 28% increase to EBITDA

Over the Wire is pleased to release our HY2021 results, delivering positive results as well as a strong outlook. Key highlights for H1 2021 include:

  • Revenue increased by 17% to $50.3m for the half
  • Recurring revenue increased by 25% to $45.9m
  • Recurring revenue representing over 90% of total revenue
  • EBITDA increased by 28% to $10.5m

In addition to these key highlights from the Half Year, we’ve also seen strong cash conversation, are nearing completion of our Tier 1 voice provider (Carrier Interconnect) project, and continue to focus on the capabilities of our three solution pillars, Cloud. Connect. Collaborate.

Commenting on the H1 2021 results, Managing Director Michael Omeros said, “We are pleased to deliver our half year result with profitability (EBITDA) being at the top end of the guidance that we provided in our Business Update late last year. The strength of our current sales pipeline and the orders being provisioned from last quarter, our most successful quarter to-date, gives us confidence of a second half result in line with our expectations. We continue to deliver high rates of recurring revenue (greater than 90% of total revenue), with a strong conversion of the profitability to cash, a good indicator of the future strength of our business.

This quarter will also see the finalising of our tier one voice provider (carrier interconnect) project. This is a strategic asset in our infrastructure portfolio that will help drive further growth in our Collaboration pillar. Our continued investment ensures that we remain committed to delivering on our strategy, and simplifying technology to empower business.”

Over the Wire remains focused on delivering strong organic growth and profitability in its recurring revenue streams. The pipeline of Recurring Revenue sales remains strong and operational efficiencies are also being seen, with EBITDA margins strengthening.

The Company continues to remain a strong converter of EBITDA into positive operating cashflows, and with $17.6m in cash and cash equivalents at half-year end, net Debt to FY21 Consensus EBITDA ratios less than 1, the balance sheet remains strong and able to support the Company’s organic and inorganic growth strategy.

For more information please refer to our Half Year Results Presentation, or our latest announcements on the ASX. 

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