Anittel Group (ASX:AYG) has reported a revenue of $36 million for the financial year ended 30 June 2014, down 3 per cent on the $37.1 million it recorded in 30 June last year.
The small revenue drop was attributed to a decline in IT product sales and services.
Earnings before interest, tax, depreciation and amortisation (EBITDA) were -$538,000 compared to $255,000 in 2013. This was due to an EBITDA loss in its Telecommunication Services business unit of -$1 million compared to a positive $336,000 last year. The loss was caused by a substantial investment in operating expenditure to set up Anittel’s cloud-based hosted collaboration solution (HCS).
However, the company expects that EBITDA in the Telco Services unit will improve as HCS investment costs decline.
The IT Products & Services division achieved an EBITDA of $490,000 compared to a -$591,000 in 2013. According to Anittel, the improved EBITDA was the result of a restructure in March 2013, which removed head office control of the IT Products & Services division. This meant that staff in offices around Australia could work to improve profitability in their state or territory.
Telco Services unit revenues decreased from $13.9 million in 2013 to $9 million this year due to Anittel selling its Communications division to BigAir Group (ASX: BGL) on 31 January 2014 for $6.5 million.
“With the significant cash injection from this divestment, Anittel has been able to continue developing and expanding its hosted service offering and vastly improved its capacity to capture opportunities as the market trends rapidly towards cloud-based services and technologies,” read the company’s ASX report.
Revenues in the IT Products & Services unit decreased from $36.9 million in 2013 to $34.2 million in 2014 due to a decline in traditional hardware and software product sales.
In September 2013, the Tasmanian government awarded Anittel a two-year contract to provide an infrastructure-as-service (IaaS) offering, which enables agencies to purchase varying quantities of storage and compute infrastructure from the telco service provider.
The contract value will depend on the take up of the service by individual government agencies, and includes two optional one-year extensions.
Follow Hamish Barwick on Twitter: @HamishBarwick