Govt projects boost FX Networks' profit

Ultra Fast Broadband and Rural Broadband Initiatives contribute to sharp increase in revenue for FX Networks

Fibre backhaul provider FX Networks is reporting a sharp increase in revenue now that the Ultra Fast Broadband project and the Rural Broadband Inititative are underway.

FX Networks increased revenue by 30 percent to $52 million in the year to March 31, says chief executive David Heald. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) nearly doubled, to 11.3 percent.

“It’s a reflection of the sector settling down after UFB and RBI decisions and the sale of TelstraClear,” he says. “People are now comfortable making their decisions.

“There’s a lot of movement in the tier 1 and tier 2 space where data demands are growing rapidly.”

Heald says a lot of the revenue increase came from annuities – up 20 percent.

“It was also a very good year for our construction business. In our RBI contract with Chorus on the East Coast, we did 230km of build. It was an incredibly difficult job, very rugged and remote terrain.”

The company added around 50 customers during the year, bringing total customer numbers to 390.

Heald says one.govt contracts showed steady growth.

“This new year is looking very solid. We began the year with $6 million in dark fibre backlog orders.

The results are unaudited.

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