MediaWorx leads FoneWorx profit lift
FoneWorx, the AltX-listed telecoms and IT solutions provider, reported on Wednesday (5 September) a 16.8% jump in operating profit, pushing it up to R28.6 million for the year ended 30 June 2012.
Headline earnings per share improved 14.2% to 16.52 cents, from 14.47 cents in 2011.
Group revenue rose 7.7% to R98.6 million, while earnings before interest, tax, depreciation and amortisation (ebitda) was 14.4% better to R32.8 million.
Cash generated by operations was 44.3% higher to R35.5 million, from R24.6 million before.
FoneWorx CEO, Mark Smith said that he was pleased that FoneWorx was able to deliver another robust set of results demonstrating the strength of its strategy.
“Our growth performance was primarily the result of the significant revenue growth from MediaWorx which increased by 40%,” he said.
FoneWorx said that the key drivers affecting its results were due to the positive adoption of the unstructured supplementary services data (USSD) services; certainty around the Consumer Protection Act; the signing of a number of blue chip advertising agencies with their solid brands; and increased activity in the Fast Moving Consumer Goods market.
Looking ahead, the group said it remains positive about the outlook for the year ended June 2013.
“BizWorx continues to provide solid annuity income, and with the launch of Email2Fax a new revenue stream will supplement the existing revenue,” it said.
FoneWorx said that MediaWorx has shown solid growth which was expected to continue in the ensuing year.
“Internet and mobile devices have made it a lot easier to reach consumers, enabling MediaWorx to provide its services more effectively,” the group said.
“The company is well positioned to deliver shareholder value and continued strong earnings by pursuing its growth strategy and ensuring that our balance sheet and capital position remain robust,” it added.
“We continue to advance a number of potential strategic opportunities as demonstrated by our recent collaboration with the Kirsh Family. With approximately R100 million of cash currently on the balance sheet, we have significant financial flexibility to support the execution of FoneWorx’s planned capital investments,” Smith said.
In noon trade on the JSE, shares in FoneWorx slipped three cents to R1.70.
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