Wireless operator Clever moves into the black

Stuart Corner
Wednesday, 26 August 2009 16:12

IT Industry - Strategy

Fixed wireless broadband network operator, Clever Communications has turned a 2008 NPAT loss of $3.5m into a profit of $0.325m for 2009 and reported a 50 percent increase in EBITDA to $1.69m.

Managing director, Scott Carter, said: "This result has been driven by continued growth in our high margin fixed wireless broadband (on-net) services. Fixed wireless Broadband (on-net) revenue has increased from $4.4m in 07/08 to over $5.4 in 08/09."

He added: "As the network owner and operator, Clever has minimal incremental costs to deliver fixed wireless broadband (on-net) services. This, combined with our focus on the high value business market through a network of national channel partners, means the company is well positioned to capitalise on the increasing need for high bandwidth, high quality managed communication solutions."

However revenue fell from $17.2m to $14.3m. Clever said this had been caused "primarily by customer churn away from lower margin products and services that the refocused business is moving away from."

During the year the company launched an unsuccessful takeover bid for rival wireless broadband network operator BigAir (ASX: BGL) that left it with a 13.7 percent share in BigAir. It also acquired NPH, a specialist provider of business Internet and data network solutions, (which it has since integrated) through the issue of 4.375 million shares and $300,000 in cash.

Clever is also on the look out for other acquisitions. It says that, as network owner and operator, it is "well placed to participate in industry consolidation and will continue to explore value-enhancing opportunities."

Network expansion is also on the cards. Clever said that, "Recent success in large customer opportunities will see Clever undertake significant network expansion to support contracted customer revenue. This will further enhance the current network coverage and expand market opportunities. In addition to this Clever will be launching a range of managed services in response to the growing demand within the business market. This will further leverage the network assets of Clever and provide additional value to both existing and new customers."