Swift earnings jump 167%

Swift Networks has posted a strong performance update for the second half of last year, with its founders set to receive around $5 million in additional shares.

The telecommunications firm reported a 167 per cent increase in earnings before interest, tax, depreciation and amortisation for the period.

Gross profit margins rose from 39 per cent to 54 per cent, while revenue for the half-year was $12.6 million, which delivered a year-on-year revenue growth of 12 per cent.

The company, which was established in 2008, also said that a performance milestone of carrying out 44,000 room installations was reached.

As a result, 38.38 million performance shares would be converted, with 16.67 million of those shares to be vested to Swift’s founders, the Sofoulis family.

Swift’s shares were up 1.69 per cent to trade at 30 cents by the close of market.

At this price, the Sofoulis family’s performance shares would be worth approximately $5 million.

As of August 30, Robert Sofoulis and his related entities own 30.185 million shares, which represents a 24.88 per cent interest in the company, and is the only shareholder with a stake in the company greater than 5 per cent.

Mr Sofoulis previously founded another telecommunications company, ASTIB Group, which was mostly divested in 2011 for approximately $50 million to Singaporean-based CSE Global.

Swift chief executive officer Xavier Kris said the company expected further growth, after it acquired Medical Media in December.

Medical Media owns 2,500 digital screens located in medical practice waiting rooms across Australia, and Swift’s acquisition was worth up to $25 million.

“We are particularly encouraged by the ability to further monetise our deployed assets and generate advertising revenue streams through our acquisition of the Medical Media business,” Mr Kris said.

“We look forward to delivering continued growth in diverse, scalable, recurring earnings both directly and through our partner network in 2019.”