FX Networks announces $900k profit

Profit achieved on revenue of more than $9 million

FX Networks has posted an audited profit of $900,000 EBITDA (earnings before interest, tax, depreciation and amortisation) for the financial year ended March 31.

It was achieved on revenue of more than $9 million and a total asset base of $24 million, says chief financial officer Derek Locke.

“We’re on target for EBITDA of $5 to $6 million this financial year on revenue of $25 million and assets of $40 million,” Locke says. “We expect sales to double.”

That’s partly based on the network provider rolling out its fibre link between Tauranga, Taupo, Hastings and Napier by November.

The company was formed in 2003 but didn’t become fully operational until September 2006 when it completed its main North Island link. Its customers now include companies such as Vodafone, Kordia, Transpower and Weta, as well as several government departments.

During the past financial year it merged into FX Networks another company, Area, which was originally set up to hold the contract it has with Ontrack, which gives it access to the fibre paralleling the main trunk line.

Locke says FX Networks’ ISP also performed well during the year, doubling its revenue.

FX Networks is best known as one of the providers of the Government Shared Network (GSN), a custom-built network that enables government agencies to share information securely and cost effectively at higher speeds.

Among the agencies that have signed up to use it so far are Archives NZ, Department of Prime Minister and Cabinet, Department of Labour, Maritime NZ, Ministry of Education, Ministry of Foreign Affairs and Trade, State Services Commission and Te Puni Kokiri.

FX Networks’ headcount is more than 30.

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