Wholesale and Retail divisions continue to drive Vonex’s impressive growth
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Telecommunications service provider and innovator Vonex Limited (ASX:VN8) has provided a positive update regarding continued growth across the Company’s Retail and Wholesale divisions.
Wholesale developments are centred around the combination of Vonex wholesale and 2SG wholesale, which will be branded as 2SG wholesale from 1 January, 2021.
The successful integration of 2SG Wholesale has allowed Vonex to develop new products and expand their offerings to its small and medium enterprise (SME) customers.
Such growth displays Vonex’s capability to capitalise on cross-selling opportunities identified prior to the 2SG Wholesale acquisition.
Wholesale’s product suite, which consists of improved service offerings and new product launches has achieved successful sales growth thus far in Q2 FY21, with Mobile Broadband orders +80%, Mobile Voice +310% and NBN with 4G backup +89% year-on-year.
FY21 will see further improvements in 2SG’s Wholesale offering, with a recent commitment from Optus to open up its 5G network to Vonex via 2SG. Vonex is now in the final stages of preparing to launch internet services that utilise 5G speeds powered by Optus.
Vonex’s Retail divisions continue to be driven by proactive marketing campaigns, helping to achieve Total Contract Value (TCV) of new customer sales of $6.6 million in CY20 to date, up 32% on the same period last year.
Growth in SME user numbers is largely driven by partnership with Qantas Business Rewards (QBR) who proactively market Vonex to their 250,000 SME members, and Vonex's status as Qantas' preferred business-focused telco provider.
The Company can clearly indicate their business development progress by its 42,000 registered active users to the Private Branch Exchange (PBX) cloud-based phone service.
FY21 Outlook
Further business development across its Retail and Wholesale division has been identified by Vonex as possessing significant organic and inorganic growth opportunities.
Vonex’s strong focus on product-market fit, efficiency and customer satisfaction assists in addressing the unmet need among Australian SMEs for telco services that are reliable, affordable, flexible, scalable and friendly to the new ‘work from home’ paradigm.
Along with organic growth drivers, Vonex is actively pursuing an acquisition-led growth strategy, particularly targeting opportunities among sub-$10 million revenue.
The successful 2SG acquisition and integration demonstrates Vonex’s ability to add value to vendors, shareholders and customers through acquisitions.
Tor Corporate Advisory Pty Ltd has been recently appointed as corporate advisor to help drive the acquisition strategy.
Tor has a strong history of accomplishment in the telco sector, specialising particularly in private company transactions valued at up to $100M.
Vonex has employed Tor to create an actionable M&A strategy and to leverage Tor’s relationships, experience and industry knowledge to screen and approach potential acquisition targets.
With a strong debt-free balance sheet and supportive institutional shareholders, Vonex is now well-positioned to gain scale as it executes its three-pillar growth strategy across Retail, Wholesale and Acquisition.
About VN8
Vonex is a full service, award-winning telecommunications service provider selling mobile, internet, traditional fixed lines, and hosted PBX and VoIP services – predominantly to the small to medium enterprise (SME) customer under the Vonex brand.
The Company also provides wholesale customers, such as internet service providers, access to the core Vonex PBX and call termination services at wholesale rates via a white label model.
Vonex also develops new technologies in the telecommunications industry, including a feature-rich cloud-hosted PBX system. Vonex is also developing the Oper8tor App, a multi-platform real-time voice, messaging and social media app that allows users to connect with all social media friends, followers and contacts across different social medias, all consolidated into one app.
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