Melbourne based 5G Networks Ltd. engages in the provision of networking, managed, and cloud services. The firm operates its fibre and wireless infrastructure and manages its computing environment. Its services include high-performance network, cloud infrastructure, high-speed unlimited internet access, cloud services, redundancy for existing fibre services, virtual private network, business phone systems, managed services, and consulting services.
5GN shared an operational update and the financial results for Q3 FY21 yesterday and their performance has resulted in a 9% surge in stock price. 5GN currently owns and operates its own Nationwide high-speed Data Network with points of presence in all major Australian capital cities. In addition, the Company offers managed cloud solutions through its Cloud and Data Centre capabilities as well as managed services to optimise customers’ IT and network environments. Supporting this is the Company’s combined rack capacity of over 1,000 racks through its owned and operated Data Centres across Melbourne, Sydney, Brisbane and Adelaide.
5GN reported $26.5m Revenue in Q3 with strong growth across all three core products and increasing demand for the 5GN Voice Bridge One Microsoft Teams product, $4.7m EBITDA was generated with a combined EBITDA target of 20% of Revenue achieved for March. There was continued margin growth expected as cloud, DC and network services continue to be consolidated within 5GN infrastructure.
In 5GN’s operations, the company announced that their Wholesale automated service fulfilment portal is progressing well and a launch in May is possible. Data Centre Fibre build is also said to be progressing very quickly with 13 Data centres online and an additional 35 will be added by the end of the financial year, and 80 by the end of the calendar year. The company is also known to be reviewing several acquisition opportunities for further growth.
The announcement has exceeded expectations and 5GN shares surged over 9% and closed at $1.19 a share.
Growth stocks are potentially one of the hardest to pick as there are a lot of factors that need to be considered – from industry tailwinds to the financial health of the individual stocks and a lot of little things in between them. Shares in the Value research team have picked their top 5 ASX stocks to buy in 2021. Click here to download the report for free.