Full Year 2026 Comms Group Ltd Earnings Call

August 24, 2026

Speaker #2: Okay. Over to you, Daniel.

Michael Diamond: Okay, over to you, Daniel.

Speaker #3: Thanks, Michael. Hello, and welcome to Comms Group's FY26 investor conference call. Today, we have Peter McGrath, CEO, and Matthew Beal, CFO of Comms Group, who will take you through the presentation.

[Company Representative] (Comms Group): Thanks, Michael. Hello, and welcome to Comms Group's FY26 Investor Conference Call. Today we have Peter McGrath, CEO, and Matthew Beale, CFO of Comms Group, who will take you through the presentation. We have a Q&A function at the bottom of the screen, so please write your questions there and they will be asked at the conclusion of the presentation. I will now hand it over to Peter.

Daniel Ireland: Hello, and welcome to Comms Group's FY26 Investor Conference Call. Today we have Peter McGrath, CEO, and Matthew Beale, CFO of Comms Group, who will take you through the presentation. We have a Q&A function at the bottom of the screen, so please write your questions there and they will be asked at the conclusion of the presentation. I will now hand it over to Peter.

Speaker #3: We have a Q&A function at the bottom of the screen, so please write your questions there, and they will be asked at the conclusion of the presentation.

Speaker #3: I'll now hand it over to Peter.

Speaker #4: Thank you, Daniel, and welcome, everyone. I'm going to run you through the results for FY26. I have Matthew Beal here with us, our CFO, and he'll run through some of the financial numbers as well.

Peter McGrath: Thank you, Daniel, and welcome everyone. I am going to run you through the results for FY26. I have Matthew Beale here with us, our CFO, and he will run through some of the financial numbers as well. The agenda is as outlined on your screens, and this pack has also been released to the market. A little bit of a clear description on who we are, and we have gone through some of our messaging just to make this a little bit clearer. We are a business-focused telecommunications and cloud services provider. We deliver advanced communications and technology solutions across Australia and internationally. We are headquartered in Sydney, have operations in Australia, Singapore, UK, and the Philippines. Many of you would know that we have an extensive network coverage across the Asia Pacific region. We serve SME, corporate, and government customers in Australia and multinational enterprises, carriers, and service providers internationally.

Speaker #4: The agenda is outlined on your screens, and this packet has also been released to the market. Here is a clearer description of who we are, and we've gone through some of our messaging just to make this a little bit clearer.

Speaker #4: We're a business-focused telecommunications and cloud services provider, and we deliver advanced communications and technology solutions across Australia and internationally. We're headquartered in Sydney and have operations in Australia, Singapore, the UK, and the Philippines.

Speaker #4: And many of you would know that we have an extensive network coverage across the Asia-Pacific region. We serve SME, corporate, and government customers in Australia, as well as multinational enterprises, carriers, and service providers internationally.

Peter McGrath: We serve SME, corporate, and government customers in Australia and multinational enterprises, carriers, and service providers internationally. We have simplified our group as well in terms of the domestic and the global arms. From a domestic Australian perspective, Business Communications and Technology as a provider to SME, corporate, and government customers, and globally, a global unified communications provider where we provide the latest unified communications solutions for multinational enterprises and wholesale partners and carriers across multiple countries. Our three business units and with our key tagline there, which is to enhance business agility through secure and innovative communications, connectivity and technology services. As you would have read a month or so back, we announced the sale of our secure managed IT solutions division.

Speaker #4: And we've simplified our group as well, in terms of the domestic and the global arm. So from a domestic Australian perspective—business communications and technology—as we're a provider to SME, corporate, and government customers. And globally, a unified communications provider, where we provide the latest unified communications solutions for multinational enterprises and wholesale partners and carriers across multiple countries.

Peter McGrath: We have simplified our group as well in terms of the domestic and the global arms. From a domestic Australian perspective, Business Communications and Technology as a provider to SME, corporate, and government customers, and globally, a global unified communications provider where we provide the latest unified communications solutions for multinational enterprises and wholesale partners and carriers across multiple countries. Our three business units and with our key tagline there, which is to enhance business agility through secure and innovative communications, connectivity and technology services. As you would have read a month or so back, we announced the sale of our secure managed IT solutions division. The business is known as onPlatinum, and that has been announced for AUD 30 million, and we expect completion very shortly, but within Q1 of FY27.

Speaker #4: Our three business units, and with our key tagline there, which is to enhance business agility through secure and innovative communications, connectivity, and technology services.

Speaker #4: As you would have read a month or so back, we announced the sale of our secure-managed IT solutions division. The business is known as OnPlatinum, and that's been announced for $30 million. We expect completion very shortly.

Peter McGrath: The business is known as onPlatinum, and that has been announced for AUD 30 million. We expect completion very shortly, but within Q1 of FY27. That is leaving two divisions within the group, our domestic Business Communications Technology, and you can see there that we are enabling Australian businesses to modernize, to collaborate and work more securely, through communications, AI, cloud and security services. Unlike a number of generalist telcos that operate in the market, particularly in the SME and consumer markets, we are a specialist with a lot of the latest tools, the applications, the security that is required for businesses to operate in this modern world, and to be secure.

Speaker #4: But within Q1 FY27, that's leaving two divisions within the group: our Domestic Business Communications and Technology. You can see there that we're enabling Australian businesses to modernize, collaborate, and work more securely through communications, AI, cloud, and security services.

Peter McGrath: That is leaving two divisions within the group, our domestic Business Communications Technology, and you can see there that we are enabling Australian businesses to modernize, to collaborate and work more securely, through communications, AI, cloud and security services. Unlike a number of generalist telcos that operate in the market, particularly in the SME and consumer markets, we are a specialist with a lot of the latest tools, the applications, the security that is required for businesses to operate in this modern world, and to be secure. Our global unified communications business, we are setting a strong precedent across Asia Pacific as a leading provider there with many licenses across the market where we enable multinational enterprises and wholesale partners to integrate and simplify their global communications, also their collaboration and customer engagement.

Speaker #4: So, unlike a number of generalist telcos that operate in the market, particularly in the SME and consumer markets, we're a specialist with a lot of the latest tools, applications, and the security that's required for businesses to operate in this modern world and to be secure.

Speaker #4: In our global unified communications business, we are setting a strong precedent across Asia-Pacific as a leading provider there, with many licenses across the market. We enable multinational enterprises and wholesale partners to integrate and simplify their global communications, as well as their collaboration and customer engagement.

Peter McGrath: Our global unified communications business, we are setting a strong precedent across Asia Pacific as a leading provider there with many licenses across the market where we enable multinational enterprises and wholesale partners to integrate and simplify their global communications, also their collaboration and customer engagement. As mentioned, we have a strong focus on the Asia Pacific region, but we do provide services outside Asia Pacific as well. Just turn now to highlights, and really pleased with how the business has performed this year on many fronts. We delivered strong overall revenue and profit growth. You can see there our revenue was up 32% to AUD 74.5 million. Obviously, there is the inclusion of TasmaNet, but we have particularly strong growth in both global and our ICT areas.

Speaker #4: As mentioned, we have a strong focus on the Asia-Pacific region, but we also provide services outside the Asia-Pacific as well. I'll just turn now to the highlights, and I'm really pleased with how the business has performed this year on many fronts.

Peter McGrath: As mentioned, we have a strong focus on the Asia Pacific region, but we do provide services outside Asia Pacific as well. Just turn now to highlights, and really pleased with how the business has performed this year on many fronts. We delivered strong overall revenue and profit growth. You can see there our revenue was up 32% to AUD 74.5 million. Obviously, there is the inclusion of TasmaNet, but we have particularly strong growth in both global and our ICT areas. Our underlying EBITDA increased to AUD 8.7 million. That is over 50% increase above FY25, and in fact came out slightly above recent market guidance. Very strong gross profit at AUD 35.5 million and our gross margins at nearly 48%. Net profit before tax of AUD 1.4 million compared to a loss last year of AUD 0.6 million. That is another key highlight for the business.

Speaker #4: We delivered strong overall revenue and profit growth. You can see there, our revenue was up 32%, to $74.5 million. Obviously, there's the inclusion attachment there, but we had particularly strong growth in both global and our ICT areas.

Speaker #4: Our underlying EBITDA increased to $8.7 million—that's over a 50% increase above FY25, and in fact, it came out slightly above recent market guidance. Very strong gross profit at $35.5 million.

Peter McGrath: Our underlying EBITDA increased to AUD 8.7 million. That is over 50% increase above FY25, and in fact came out slightly above recent market guidance. Very strong gross profit at AUD 35.5 million and our gross margins at nearly 48%. Net profit before tax of AUD 1.4 million compared to a loss last year of AUD 0.6 million. That is another key highlight for the business. Also recording new sales contracts at 10.9, our highest level on record and higher than our significantly great result that we saw in FY25. Couple of other things we did within the year that is not necessarily called out there, but we bought TasmaNet which was at the end of FY25 in June in fact.

Speaker #4: And our gross margins are at nearly 48%, with net profit before tax of $1.4 million, compared to a loss last year of $0.6 million. So that's another key highlight for the business.

Speaker #4: And also recording new sales contracts of $10.9 million, our highest level on record, and higher than the significantly great result that we saw in FY25.

Peter McGrath: Also recording new sales contracts at 10.9, our highest level on record and higher than our significantly great result that we saw in FY25. Couple of other things we did within the year that is not necessarily called out there, but we bought TasmaNet which was at the end of FY25 in June in fact. So we have brought that business on, and transitioned and integrated that business, bringing all customers across etcetera, and particularly government customers. We also announced the sale of the onPlatinum business in the year for AUD 30 million. That was a very attractive offer for us and our shareholders. It crystallized a significant value accretion in the year, considering we bought that business for AUD 12 million. We have also announced a dividend of AUD 0.00125 a share, fully franked. There is details on the ASX platform in terms of when that will be paid.

Speaker #4: A couple of other things we did within the year that are not necessarily called out there, but we bought Tasmanet, which was at the end of FY25, in June in fact.

Speaker #4: So we've brought that business on and transitioned and integrated that business, bringing all customers across, etcetera, particularly government customers. We also announced the sale of the OnPlatinum business in the year for $30 million.

Peter McGrath: So we have brought that business on, and transitioned and integrated that business, bringing all customers across etcetera, and particularly government customers. We also announced the sale of the onPlatinum business in the year for AUD 30 million. That was a very attractive offer for us and our shareholders. It crystallized a significant value accretion in the year, considering we bought that business for AUD 12 million. We have also announced a dividend of AUD 0.00125 a share, fully franked. There is details on the ASX platform in terms of when that will be paid. Just go through some of these financial highlights now. You can see there the revenue, up 32% to AUD 74.5 million. That is within our recent guidance of AUD 74 million to AUD 75 million.

Speaker #4: That was a very attractive offer for us and our shareholders, and it crystallized significant value accretion in the year, considering we bought that business for $12 million.

Speaker #4: We've also announced a dividend of 0.125 cents a share, fully franked. There are details on the ASX platform regarding when that will be paid.

Speaker #4: Let's go through some of these financial highlights now. You can see there the revenue is up 32% to $74.5 million. That's within our recent guidance of $74 to $75 million.

Peter McGrath: Just go through some of these financial highlights now. You can see there the revenue, up 32% to AUD 74.5 million. That is within our recent guidance of AUD 74 million to AUD 75 million. Gross profit at AUD 35.5 million as mentioned earlier. A continued strong gross margins at 47.9%. Very happy with our underlying EBITDA up 52% on the previous corresponding period to AUD 8.7 million. Our operating cash flow was up as well to AUD 4.7 million, and that is after a significant one-off integration and transaction cost. See our group revenue over time here. Something that we are really pleased with to see that growth over time with our strategy of making selective acquisitions and also organic growth. Back in FY22, AUD 41 million, now it is AUD 74.5 million and a 32% increase in the year just gone.

Speaker #4: Gross profit at $35.5 million, as mentioned earlier. Continued strong gross margins at 47.9%. Very happy with our underlying EBITDA, up 52% on the previous corresponding period to $8.7 million.

Peter McGrath: Gross profit at AUD 35.5 million as mentioned earlier. A continued strong gross margins at 47.9%. Very happy with our underlying EBITDA up 52% on the previous corresponding period to AUD 8.7 million. Our operating cash flow was up as well to AUD 4.7 million, and that is after a significant one-off integration and transaction cost. See our group revenue over time here. Something that we are really pleased with to see that growth over time with our strategy of making selective acquisitions and also organic growth. Back in FY22, AUD 41 million, now it is AUD 74.5 million and a 32% increase in the year just gone. Slightly less in H2, mainly due to some one-offs and some revenue that is not repeating into the H2, which I will elaborate on shortly.

Speaker #4: And our operating cash flow was up as well, to $4.7 million. And that's after significant one-off integration and transaction costs. So our group revenue over time here is something that we're really pleased with, to see that growth over time, with our strategy of making selective acquisitions and also organic growth.

Speaker #4: Back in FY22, 41 million, now it's 74.5 million, and a 32% increase in the year just gone. Slightly less in second half, mainly due to some one-offs and some revenue that's not repeating into the second half, which I'll elaborate on shortly.

Peter McGrath: Slightly less in H2, mainly due to some one-offs and some revenue that is not repeating into the H2, which I will elaborate on shortly. A strong year, and a particularly strong H1 and a H2 for the group. Revenue by division now. You can see our Business Communications and Technology that was previously referred to as Communications and Collaboration for SME. I think the new title really encapsulates some of those extended offerings that we have now for customers, particularly in the security area and the contact center and the agentic AI enablement products that we are bringing to market. Saw a step change in revenue there, as a result of the TasmaNet acquisition on 16 June. So revenue came in at AUD 37 million, and this is all external revenue, just for your information.

Speaker #4: But a strong year and a particularly strong first half and a second half for the group. Revenue by division now. You can see our business communications and technology.

Peter McGrath: A strong year, and a particularly strong H1 and a H2 for the group. Revenue by division now. You can see our Business Communications and Technology that was previously referred to as Communications and Collaboration for SME. I think the new title really encapsulates some of those extended offerings that we have now for customers, particularly in the security area and the contact center and the agentic AI enablement products that we are bringing to market. Saw a step change in revenue there, as a result of the TasmaNet acquisition on 16 June. So revenue came in at AUD 37 million, and this is all external revenue, just for your information. Our Secure Managed IT Solution had another strong growth in the year, which was really positive to see. That increased to AUD 22.3 million.

Speaker #4: That was previously referred to as Communications and Collaboration, or SME. I think the new title really encapsulates some of those extended offerings that we have now for customers, particularly in the security area and the contact centre.

Speaker #4: And the AI enablement products that we are bringing to market, so a step change in revenue there as a result of the Tasmanet acquisition on the 16th of June. So, revenue came in at $37 million.

Speaker #4: And this is all external revenue, just for your information. Our Secure Managed IT solution had another strong growth in the year, which was really positive to see.

Peter McGrath: Our Secure Managed IT Solution had another strong growth in the year, which was really positive to see. That increased to AUD 22.3 million. Our global business continued revenue growth, some great contract wins in the year as well. Very low churn and some FX headwinds in the H2 in that the US dollar weakened against the AU dollar. A lot of our contracts are denominated in US dollars and also euro. To increase our revenue there from AUD 13.1 million to AUD 15.2 million, really happy with that. We would expect to see that growth continuing in our global business. Revenue composition there. You can see there, circa 93% of recurring and usage-based revenue. A little bit of an increase there in our one-off and project type revenue within the year. Very happy with the overall strong level of recurring and services fees within the year.

Speaker #4: And that increased to $22.3 million. And then our global business continued revenue growth, with some great contract wins in the year as well. Very low churn.

Peter McGrath: Our global business continued revenue growth, some great contract wins in the year as well. Very low churn and some FX headwinds in the H2 in that the US dollar weakened against the AU dollar. A lot of our contracts are denominated in US dollars and also euro. To increase our revenue there from AUD 13.1 million to AUD 15.2 million, really happy with that. We would expect to see that growth continuing in our global business. Revenue composition there. You can see there, circa 93% of recurring and usage-based revenue. A little bit of an increase there in our one-off and project type revenue within the year. Very happy with the overall strong level of recurring and services fees within the year. Gross profit and margin shown there.

Speaker #4: And there were some FX headwinds in the second half, in that the US dollar weakened against the AU dollar. A lot of our contracts are denominated in US dollars and also euros.

Speaker #4: But to increase our revenue there from $13.1 million to $15.2 million, we're really happy with that, and we would expect to see that growth continue in our global business.

Speaker #4: Revenue composition there—you can see there's circa 93% recurring and usage-based revenue, with a little bit of an increase in our one-off and project-type revenue within the year.

Speaker #4: But very happy with the overall strong level of recurring and services fees within the year. Gross profit and margin are shown there. The graph at the top probably accentuates the change there.

Peter McGrath: Gross profit and margin shown there. I think the graph at the top probably accentuates the change there. Almost flat, if you can see that there. This is after digesting TasmaNet as well. Obviously, some of the cost reductions and the synergies have not come through for a full year as yet. A strong increase from AUD 27.1 million to AUD 35.5 million in terms of overall gross profit there. If we look at the breakdown of gross profit by division, a strong level of gross profit across all three divisions. We can see there the BC&T area coming in at AUD 16 million, so a AUD 6 million increase, largely due to the TasmaNet acquisition and margins holding up quite well there at the 43% level. Our Secure Managed IT Solutions coming in at AUD 10.9 million versus AUD 9.7 million.

Peter McGrath: I think the graph at the top probably accentuates the change there. Almost flat, if you can see that there. This is after digesting TasmaNet as well. Obviously, some of the cost reductions and the synergies have not come through for a full year as yet. A strong increase from AUD 27.1 million to AUD 35.5 million in terms of overall gross profit there. If we look at the breakdown of gross profit by division, a strong level of gross profit across all three divisions. We can see there the BC&T area coming in at AUD 16 million, so a AUD 6 million increase, largely due to the TasmaNet acquisition and margins holding up quite well there at the 43% level. Our Secure Managed IT Solutions coming in at AUD 10.9 million versus AUD 9.7 million.

Speaker #4: Almost flat, if you can see that there. And this is after digesting Tasmanet as well. And obviously, some of the cost reductions and the synergies haven't come through for a full year as yet.

Speaker #4: But a strong increase from $27.1 million to $35.5 million in terms of overall gross profit there. If we look at the breakdown of gross profit by division, a strong level of gross profit across all three divisions. We can see there the BC&T area came in at $16 million.

Speaker #4: So, a $6 million increase, largely due to the Tasmanet acquisition and margins holding up quite well there at the 43% level. Our secure managed IT solutions came in at $10.9 million versus $9.7 million.

Speaker #4: And that's where you see that growth I was referring to before, where we've seen that go from 8.7, 9.3, 9.7, 10.9. And then our global business, which is really all organic growth there.

Peter McGrath: That is where you see that growth I was referring to before where we have seen that go from 8.7, 9.3, 9.7 to 10.9. Our global business, which is really all organic growth there, had a kick-up in gross profit margin or gross margin. That was from winning some larger deals where we had some upfront fees. I do not think that we would expect the gross margin would stay at those levels. I think we have indicated previously around the 50% mark we would be very happy with for that global business. The kick-up in the actual gross profit from 7 to 8.5 and a lot of that flowing to the bottom line. We have touched on in the past the investment that we made in FY25 with additional sales resources, et cetera. You are really seeing that come through in that gross profit increase there.

Speaker #4: A kick-up in gross profit margin. Gross margin now—that was from winning some larger deals where we had some upfront fees. I don't think that we would expect the gross margin to stay at those levels.

Speaker #4: I think we've indicated previously that we'd be very happy with around the 50% mark for that global business. But the increase in actual gross profit from $7 million to $8.5 million, and a lot of that flowing to the bottom line.

Speaker #4: And we've touched on in the past the investment that we made in FY25 with additional sales resources, etc. And you've really seen that come through in that gross profit increase there.

Peter McGrath: You are really seeing that come through in that gross profit increase there. That flows through then to our underlying EBITDA, which was up 52% to AUD 8.7 million. All three segments grew. We see that kick up there in global and the investment it is highlighted there in global staffing and expanded country coverage that we made in previous years, FY25, but earlier years as well, is really paying dividends there. We improved our overall EBITDA to revenue margin and underlying EBITDA, as we are showing here, to nearly 12%. Really happy with that result. You can see the underlying result there for global though increasing quite significantly, greater than doubling. Also, our ICT business went particularly well. Also our BC&T, which was largely from some of that TasmaNet profit flowing through or gross profit flowing through.

Speaker #4: That flows through then to our underlying EBITDA, which was up 52% to $8.7 million. All three segments grew. We see that kick up there in Global and the investment, as highlighted there, in Global staffing and expanded country coverage that we made in previous years—FY25 as well as earlier years.

Peter McGrath: That flows through then to our underlying EBITDA, which was up 52% to AUD 8.7 million. All three segments grew. We see that kick up there in global and the investment it is highlighted there in global staffing and expanded country coverage that we made in previous years, FY25, but earlier years as well, is really paying dividends there. We improved our overall EBITDA to revenue margin and underlying EBITDA, as we are showing here, to nearly 12%. Really happy with that result. You can see the underlying result there for global though increasing quite significantly, greater than doubling. Also, our ICT business went particularly well. Also our BC&T, which was largely from some of that TasmaNet profit flowing through or gross profit flowing through. I will hand over to our CFO, Matthew Beale, to go through the accounts in a bit more detail.

Speaker #4: That's really paying dividends there. We improved our overall EBITDA-to-revenue margin and underlying EBITDA, as we're showing here, to nearly 12%. We're really happy with that result.

Speaker #4: And you can see the underlying result there for global, though increasing quite significantly—greater than doubling. Also, ICT business went particularly well, and also our BC&T, which was largely from some of that Tasmanet profit flowing through, or gross profit flowing through.

Speaker #4: I'll now hand over to our CFO, Matthew Beal, to go through the accounts in a little bit more detail.

Peter McGrath: I will hand over to our CFO, Matthew Beale, to go through the accounts in a bit more detail.

Matthew Beale: Thanks, Peter. As Peter has already alluded to, for the year, we have generated significant increase in revenue and profits on the back of the TasmaNet acquisition and organic growth particularly in both the global and the ICT businesses. We reported statutory revenues of AUD 74.5 million versus the prior year, AUD 56.6 million. Significantly, we have reported or returned to a statutory net profit before tax of AUD 1.4 million versus a loss of AUD 600,000 in the previous year. That is significant on the back of a significant amortization cost of brands and contracts that we have to recognize of AUD 1.5 million. We have reported underlying EBITDA of AUD 8.7 million versus the prior year, AUD 5.7 million. Whilst there is a significant contribution from TasmaNet, there is also a significant increase from the underlying businesses, as I said, particularly increases from the global and the ICT businesses.

Speaker #2: Thanks, Peter. As Peter's already alluded to, for the year we've generated a significant increase in revenue and profits on the back of the Tasmanet acquisition and organic growth, particularly in both the Global and the ICT businesses.

Speaker #2: We reported statutory revenues of $74.5 million, versus the prior year’s $56.6 million. Significantly, we've reported—or returned to—a statutory net profit before tax of $1.4 million, versus a loss of $600,000 in the previous year.

Speaker #2: And that is significant on the back of a significant amortization cost of brands and contracts that we have to recognize at $1.5 million.

Speaker #2: We've reported underlying EBITDA of $8.7 million, versus the prior year, $5.7 million. And whilst there's a significant contribution from Tasmanet, there's also a significant increase from the underlying businesses, as I said, particularly increases from the Global and the ICT businesses.

Matthew Beale: Whilst there is a significant contribution from TasmaNet, there is also a significant increase from the underlying businesses, as I said, particularly increases from the global and the ICT businesses. We have reported underlying NPATA of AUD 4.1 million, which is up against the prior year of AUD 2.9 million. That was before, as Peter has also mentioned, some significant acquisition and transaction and restructuring costs of AUD 2.1 million. Most of which relates to the acquisition of the TasmaNet business early on in the financial year, and then later in the year, the costs in relation to the sale of the ICT business. If we move over to the cash flow statement.

Speaker #2: We've reported underlying NPATA of $4.1 million, which is up against the prior year of $2.9 million. And that was before, as Peter's also mentioned, some significant acquisition, transaction, and restructuring costs of $2.1 million, most of which relates to the acquisition of the Tasmanet business early on in the financial year and then, later in the year, the costs in relation to the sale of the ICT business.

Matthew Beale: We have reported underlying NPATA of AUD 4.1 million, which is up against the prior year of AUD 2.9 million. That was before, as Peter has also mentioned, some significant acquisition and transaction and restructuring costs of AUD 2.1 million. Most of which relates to the acquisition of the TasmaNet business early on in the financial year, and then later in the year, the costs in relation to the sale of the ICT business. If we move over to the cash flow statement. This year, at the end of the year, we have reported a cash balance of AUD 4.6 million versus the closing cash of the prior year, AUD 5.5 million, which is a decrease of AUD 900,000. But once again, that was after the payment of some significant transaction acquisition and restructuring costs during the year. We have reported a statutory operating cash flow of AUD 4.7 million versus the prior year, AUD 4.4 million.

Speaker #2: If we move over to the cash flow statement. So this year, we've reported—statutory, sorry—at the end of the year, we've reported a cash balance of $4.6 million, versus the closing cash of the prior year, $5.5 million, which is a decrease of $900,000.

Matthew Beale: This year, at the end of the year, we have reported a cash balance of AUD 4.6 million versus the closing cash of the prior year, AUD 5.5 million, which is a decrease of AUD 900,000. But once again, that was after the payment of some significant transaction acquisition and restructuring costs during the year. We have reported a statutory operating cash flow of AUD 4.7 million versus the prior year, AUD 4.4 million. An underlying operating cash flow of AUD 7.3 million, which is just up on the prior year of AUD 7.2 million. In terms of some of the other payments, we had investing activities payments of AUD 900,000, which relate to payments for the TasmaNet business. So during the year, we paid, I think, another AUD 650,000 in August.

Speaker #2: But once again, that was after the payment of some significant transaction, acquisition, and restructuring costs during the year. We've reported a statutory operating cash flow of $4.7 million, versus the prior year, $4.4 million.

Speaker #2: An underlying operating cash flow of $7.3 million, which is just up on the prior year of $7.2 million. In terms of some of the other payments, we had investing activities payments of $900,000, which relate to payments for the Tasmanet business.

Matthew Beale: An underlying operating cash flow of AUD 7.3 million, which is just up on the prior year of AUD 7.2 million. In terms of some of the other payments, we had investing activities payments of AUD 900,000, which relate to payments for the TasmaNet business. So during the year, we paid, I think, another AUD 650,000 in August, and then we had a final payment for deferred consideration of AUD 250,000 in January of this year. We had proceeds from share issues of AUD 500,000, which related to an investment by the new director, Stephen Picton. We obviously had significant receipts and payments in relation to the bank borrowings. The AUD 11.5 million repayment related to the repayment of Regal, plus the monthly loan repayments that we are required to make to both them, plus Westpac under their new facility.

Speaker #2: So during the year, we paid, I think, another $650,000 in August. And then we had a final payment for deferred consideration of $250,000 in January of this year.

Matthew Beale: Then we had a final payment for deferred consideration of AUD 250,000 in January of this year. We had proceeds from share issues of AUD 500,000, which related to an investment by the new director, Stephen Picton. We obviously had significant receipts and payments in relation to the bank borrowings. The AUD 11.5 million repayment related to the repayment of Regal, plus the monthly loan repayments that we are required to make to both them, plus Westpac under their new facility. The proceeds from bank borrowings of AUD 11.6 million were what we received from Westpac to pay out Regal, plus some new equipment finance loans that we took out during the year.

Speaker #2: We had proceeds from share issues of $500,000, which related to an investment by the new director, Stephen Picton. We obviously had significant receipts and payments in relation to the bank borrowings.

Speaker #2: The $11.5 million repayment related to the repayment of Regal, plus the monthly loan repayments that were required to be made to both them and Westpac under their new facility.

Speaker #2: And then, obviously, the proceeds from the bank borrowings of $11.6 million were what we received from Westpac to pay out Regal, plus some new equipment finance loans that we took out during the year.

Matthew Beale: The proceeds from bank borrowings of AUD 11.6 million were what we received from Westpac to pay out Regal, plus some new equipment finance loans that we took out during the year. So just in terms of the cash at the end of the year, we have attributed AUD 2.9 million to continuing operations and AUD 1.7 million to discontinued operations, which relates to the ICT business that has been sold. However, obviously post-settlement, which we expect to happen shortly, there will be the better part of AUD 30 million cash in the bank before we use it for various purposes. If you move to the balance sheet. So at the end of the year, we have reported net assets of AUD 37.4 million versus the prior year, AUD 36.7 million.

Speaker #2: So just in terms of the cash at the end of the year, we've attributed $2.9 million to continuing operations and $1.7 million to discontinued operations, which relates to the ICT business that's been sold.

Matthew Beale: So just in terms of the cash at the end of the year, we have attributed AUD 2.9 million to continuing operations and AUD 1.7 million to discontinued operations, which relates to the ICT business that has been sold. However, obviously post-settlement, which we expect to happen shortly, there will be the better part of AUD 30 million cash in the bank before we use it for various purposes. If you move to the balance sheet. So at the end of the year, we have reported net assets of AUD 37.4 million versus the prior year, AUD 36.7 million. This year you can see some significant changes in terms of disclosures and numbers from the prior year with any assets and liabilities that we have in relation to the ICT business that has been sold, recorded as either assets held for sale and liabilities held for sale.

Speaker #2: However, obviously, post-settlement, which we expect to happen shortly, there will be the better part of 30 million dollars cash in the bank before it's various before we use it for various purposes.

Speaker #2: If we move to the balance sheet, at the end of the year we've reported net assets of $37.4 million, versus the prior year, $36.7 million.

Speaker #2: And obviously, this year, you can see some significant changes in terms of disclosures and numbers from the prior year, with any assets and liabilities that we have in relation to the ICT business that's been sold recorded as either assets held for sale or liabilities held for sale.

Matthew Beale: This year you can see some significant changes in terms of disclosures and numbers from the prior year with any assets and liabilities that we have in relation to the ICT business that has been sold, recorded as either assets held for sale and liabilities held for sale. So you will see that obviously there are some significant changes in other balances from the prior year, and that mostly relates to the reclassification of those ICT assets and liabilities. So just running through some of the numbers. We have got goodwill and other intangible assets of AUD 33 million on hand relative to the prior year of AUD 48 million, but obviously that decrease relates to reclassifying any goodwill and intangible assets that relates to the ICT business. We have got total borrowings. The prior year, we reported AUD 10.7 million as a current amount, which related to the Regal loan.

Speaker #2: So, you'll see that, obviously, there are some significant changes in other balances from the prior year, and that mostly relates to the reclassification of those ICT assets and liabilities.

Matthew Beale: So you will see that obviously there are some significant changes in other balances from the prior year, and that mostly relates to the reclassification of those ICT assets and liabilities. So just running through some of the numbers. We have got goodwill and other intangible assets of AUD 33 million on hand relative to the prior year of AUD 48 million, but obviously that decrease relates to reclassifying any goodwill and intangible assets that relates to the ICT business. We have got total borrowings.

Speaker #2: So just running through some of the numbers, we've got goodwill and other intangible assets of $33 million on hand, relative to the prior year, $48 million.

Speaker #2: But obviously, that decrease relates to reclassifying any goodwill and intangible assets that relate to the ICT business. We’ve got total borrowings — the prior year we reported $10.7 million as a current amount, which related to the Regal loan.

Matthew Beale: The prior year, we reported AUD 10.7 million as a current amount, which related to the Regal loan. This year we have got a balance of AUD 10.9 million, which has been reclassified now as AUD 1.7 million current and AUD 9.2 million non-current, which is in line with the three-year term loan from Westpac that we now have. If you move to the next slide, the financial track record. I think as you can see, all of these graphs probably represent the growth in the business going back to FY20 when we made our first acquisition or made the first acquisition in FY21.

Speaker #2: This year, we've got a balance of $10.9 million, which has now been reclassified as $1.7 million current and $9.2 million non-current. This is in line with the three-year term loan from Westpac that we've received, or that we now have.

Matthew Beale: This year we have got a balance of AUD 10.9 million, which has been reclassified now as AUD 1.7 million current and AUD 9.2 million non-current, which is in line with the three-year term loan from Westpac that we now have. If you move to the next slide, the financial track record. I think as you can see, all of these graphs probably represent the growth in the business going back to FY20 when we made our first acquisition or made the first acquisition in FY21. So you can see there the combination in the revenues, the growth profit, and the underlying earnings, as well as the cash flow, which is not only in line with those acquisitions that we have made over the years, but also the organic growth over that period of time, particularly once again in the global and the ICT business. I will hand back to Peter.

Speaker #2: If you move to the next slide, the financial track record, I think, as you can see, all of these graphs probably represent the growth in the business going back to FY20, when we made our first acquisition—or made the first acquisition in FY21.

Speaker #2: So you can see there the combination in the revenues, the growth, profit, and the underlying earnings, as well as the cash flow, which is not only in line with those acquisitions that we made over the years, but also the organic growth through that period of time, particularly once again in the Global and the ICT business.

Matthew Beale: So you can see there the combination in the revenues, the growth profit, and the underlying earnings, as well as the cash flow, which is not only in line with those acquisitions that we have made over the years, but also the organic growth over that period of time, particularly once again in the global and the ICT business. I will hand back to Peter.

Speaker #2: So, I'll hand back to Peter.

Speaker #1: Okay, thank you, Matthew. Thank you. Okay, Peter, on our capital management framework, I just want to reemphasize that, obviously, we want to ensure that the business has sufficient liquidity to operate in all operating environments.

Peter McGrath: Thank you. Back a bit on our capital management framework, just to reemphasize that. We want to ensure that the business has sufficient liquidity to operate in all operating environments, so that strong balance sheet is supported by discipline, liquidity, and risk control. We do plan to reduce debt post the sale of onPlatinum. We are not suggesting it will be fully reduced, but to reduce debt level somewhat, and then to make a distribution to shareholders. We want to continue to invest in technology and services. If there is any relevant M&A opportunities, we would look to pursue those. We are very happy with the fact that we are paying dividends.

Speaker #1: So that's a strong balance sheet. That's supported by discipline, liquidity, and risk control. We do plan to reduce debt post-sale on Platinum. We're not suggesting it will be fully reduced, but to reduce the debt level somewhat.

Speaker #1: And then, to make a distribution to shareholders. We want to continue to invest in technology and services, and if there are any relevant M&A opportunities, we would look to pursue those.

Speaker #1: And look, we're very happy with the fact that we're paying dividends. I think if you look at the sector, other than the very large companies like Telstra, if you look at the tier twos, if you like, we're one of the few in the market that does pay a dividend, and a fully franked dividend.

Peter McGrath: I think if you look at the sector other than the very large companies like Telstra, if you look at the tier 2s, if you like, we are one of the few in the market that does pay a dividend and a fully franked dividend. We do believe that shows a sense of capital discipline as well, in that we need to balance the various stakeholders within the business, but to make sure that the business has that cash generation so that we can continue to pay those dividends. I will now turn to an operational update. These graphs here show our sales performance. You can see there, the strong level in FY25, particularly with the number of large contract wins. I think the positive thing for our global business, if we look at FY26 there, another strong year for global, AUD 4 million annual recurring revenue.

Speaker #1: We do believe that shows a sense of capital discipline as well, and that we need to balance the various stakeholders within the business, but also make sure that the business has that cash generation so that we can continue to pay those dividends.

Speaker #1: I'll now turn to an operational update. These graphs here show our sales performance, and you can see there the strong level in FY25, particularly with a number of large contract wins.

Speaker #1: I think the positive thing for our global business, if we look at FY26, is another strong year for Global, $4 million. And then your recurring revenue was significant last quarter, and a major win for the business just before in June—in fact, just before the end of the financial year.

Peter McGrath: A significant last quarter, a major win for the business just before in June. In fact, it is before the end of the financial year, and that service is currently being provisioned. I think we would add to that the fact that we won a very large contract back in FY25. We announced to the market with a major NASDAQ technology company, and those services are now being provisioned in this year. So I think we will get the revenue uplift from the sales made in FY26, plus some sales in FY25 that have taken a bit longer to provision. BC&T new ARR grew 36% to AUD 4 million. That was supported by a full year of TasmaNet contribution. TasmaNet in the last few months has seen some really good sales wins, which is great. ICT had another strong year as well in terms of new sales contracts.

Speaker #1: And that service is currently being provisioned. And I think we'd add to that the fact that we won a very large contract back in FY25.

Speaker #1: We announced the market with a major Nasdaq technology company, and those services are now being provisioned this year. So, I think we'll get the revenue uplift from the sales made in FY26, plus some sales in FY25 that have taken a bit longer to provision.

Speaker #1: BCNT new ARR grew 36% to $4 million. That was supported by a full year of Tazmanet contribution, and Tazmanet in the last few months has seen some really good sales wins, which is great.

Speaker #1: ICT had another strong year as well in terms of new sales contracts. Just for the benefit of our investors out there, here is a little bit more detail on the product set.

Peter McGrath: Just for the benefit of our investors out there, here is a little bit more detail on the product set that we are taking to market, and we have broken it down into a number of categories now just to make it a little bit easier. You will see there in our business communications and technology group, which is our domestic business, quite a number of areas now where we provide collaboration and contact center type services. We recently released an agentic AI-based contact center solution. We have had some good wins from that. It has been well-regarded in the market. We believe that there is a really good opportunity for that. We have some AI-powered transcription, sentiment analysis, and insights. We are hearing from analysts out there that voice is going to be very important in an AI world, but particularly the ability to decode that voice, the sentiments, et cetera.

Speaker #1: That we're taking to market, and we've broken it down into a number of categories now, just to make it a little bit easier. You'll see there, in our Business Communications and Technology Group, which is our domestic business, quite a number of areas now where we provide collaboration and contact center-type services.

Speaker #1: We recently released an agentic, AI-based contact center solution. We've had some good wins from that. It's been well regarded in the market, and we believe there's a really good opportunity for it.

Speaker #1: We have some AI-powered transcription, sentiment analysis, and insights. And we're hearing from analysts out there that voice is going to be very important in an AI world.

Peter McGrath: We are hearing from analysts out there that voice is going to be very important in an AI world, but particularly the ability to decode that voice, the sentiments, et cetera. We have a number of key tools there that we take to market. Obviously, our specialty with Teams calling, Webex calling, and also our generic cloud phone, which is cloud-based telephony and inbound services. Extensive connectivity. Connectivity is still important for us, although it is table stakes today. We get a variety of different demands, whether that is fiber, ethernet, NBN, et cetera. Security is an area we have been ramping up our capabilities and credentials. Customers want to make sure that they have a safe environment. We have some specialties there, particularly with Fortinet and then a number of cloud offerings. We will continue those cloud offerings.

Speaker #1: But particularly, the ability to decode that voice—the sentiments, etc. So we have a number of key tools there that we take to market.

Peter McGrath: We have a number of key tools there that we take to market. Obviously, our specialty with Teams calling, Webex calling, and also our generic cloud phone, which is cloud-based telephony and inbound services. Extensive connectivity. Connectivity is still important for us, although it is table stakes today. We get a variety of different demands, whether that is fiber, ethernet, NBN, et cetera. Security is an area we have been ramping up our capabilities and credentials. Customers want to make sure that they have a safe environment. We have some specialties there, particularly with Fortinet and then a number of cloud offerings. We will continue those cloud offerings. We are a very strong provider in Tasmania, and TasmaNet is included within this division. But a number of those offerings, we will continue on the mainland, even though we are separating our one cloud infrastructure across to the purchaser of onPlatinum.

Speaker #1: Obviously, our specialty is with Teams Calling, Webex Calling, and also our generic cloud phone, which is cloud-based telephony and inbound services. Extensive connectivity—connectivity is still important for us, although it's table stakes today.

Speaker #1: We get a variety of different demands, whether that's fiber, Ethernet, NBN, etc. Security is an area where we've been ramping up our capabilities and credentials.

Speaker #1: Customers want to make sure that they have a safe environment. So we have some specialties there, particularly with Fortinet, and then a number of cloud offerings.

Speaker #1: So we will continue those cloud offerings. We're a very strong provider in Tasmania, and TasmaNet's included within this division. But a number of those offerings we will continue on the mainland, even though we are separating our one cloud infrastructure across to the purchaser of OnPlatinum.

Peter McGrath: We are a very strong provider in Tasmania, and TasmaNet is included within this division. But a number of those offerings, we will continue on the mainland, even though we are separating our one cloud infrastructure across to the purchaser of onPlatinum.

Speaker #1: We still have some capabilities on the mainland as well. Our global unified communications—you can see there are some of the product offerings we have.

Peter McGrath: We still have some capabilities on the mainland as well. Our global unified communications, you can see there some of the product offerings we have. We are a specialist in being able to provide multinationals with the same solution in multiple markets, which is what they are after. That way, they can deliver the types of productivity, innovation, and collaboration that they need within their own business. We also sell a number of these services via some large global carriers who then take that to market to their customers. You can see there a little bit about our geographic coverage as well, and we have subsidiaries in a number of key markets now. We can do things in terms of contracting and currency support for some of our key customers.

Speaker #1: We're specialists in being able to provide multinationals with the same solution in multiple markets, which is what they're after. That way, they can deliver the types of productivity, innovation, and collaboration that they need within their own business.

Speaker #1: We also sell a number of these services via some large global carriers, who then take that to market to their customers. You can see there a little bit about our geographic coverage as well.

Speaker #1: And we have subsidiaries in a number of key markets now, so we can do things in terms of contracting and currency support for some of our key customers.

Speaker #1: Asia Pacific's a strong focus for us. But as I mentioned earlier, we can provide services in more than 65 markets today—it's our global network there.

Peter McGrath: Asia Pacific is a strong focus for us, but as I mentioned earlier, we can provide services in more than 65 markets today. Our global network there. We set about differentiating ourselves probably about 5 years ago to make sure that we have compliant PSTN services in many countries. You can see there those green point of presence, POPs, as we call them, in various markets, which we need there from a regulatory perspective. We are continuing to expand our go-to-market and add new carrier partners. The carrier partners we are speaking to, which are some of the world's largest telcos, find our offerings, our flexibility, our account management, and our coverage very appealing. Just turn now to strategy and outlook. Just to refine our strategy, particularly now that we are close to selling or completing on the sale of onPlatinum.

Speaker #1: We started differentiating ourselves probably about five years ago, to make sure that we had compliant PSDN services in many countries. You can see there, those green points of presence—the POPs, as we call them—in various markets, which we need from a regulatory perspective.

Speaker #1: We continue to expand our go-to-market and add new carrier partners. And the carrier partners we're speaking to—which are some of the world's largest telcos—find our offerings, our flexibility, our account management, and our coverage very appealing.

Speaker #1: Let's now turn to strategy and outlook. To further refine our strategy—particularly now that we're close to selling, or completing the sale of, On Platinum—we want to complete that divestment.

Peter McGrath: We want to complete that divestment, obviously strengthen the balance sheet and look to bring in some lower debt, pay a return to shareholders. We are finalizing that one network and one cloud consolidation program, and also coming through with finalizing our synergy program and driving some operational efficiencies. At BC&T, go-to-market, new products, some additional product offerings that you have just seen on the previous slides. We want to expand our go-to-market across mainland Australia and Tasmania. We also want to continue the international expansion of our global business. In terms of the year ahead, we think we have got a simpler structure. We have a very strong sales pipeline, and a strong earnings base as we move forward. We do expect that we will be able to improve our margins somewhat, as we continue with this synergy program and this cost synergy and driving some operational efficiencies.

Speaker #1: Obviously, strengthen the balance sheet and look to bring in some lower debt. Pay a return to shareholders. We're finalizing that one network and one cloud consolidation program.

Speaker #1: And also coming through with finalizing our synergy program and driving some operational efficiencies. Our BCNT go-to-market, new products, and additional product offerings that you've just seen.

Speaker #1: On the previous slides, we outlined our intention to expand our go-to-market approach across mainland Australia and Tasmania. We also want to continue the international expansion of our global business.

Speaker #1: So, in terms of the year ahead, we think we've got a simpler structure. We have a very strong sales pipeline and a strong earnings base as we move forward.

Speaker #1: We do expect that we will be able to improve our margins somewhat as we continue with this synergy program, these cost synergies, and by driving some operational efficiencies.

Speaker #1: We will provide further guidance, obviously, as the year progresses. And then, some of the growth opportunities that we see—obviously, organic and inorganic opportunities to build global scale and add more capability, plus some new product offerings as outlined in our BCNT.

Peter McGrath: We will provide further guidance, obviously, as the year progresses. Then some of the growth opportunities that we see, obviously organic and inorganic opportunities to build global scale and add more capability, some new product offerings as outlined in our BC&T, additional go-to-market channels in BC&T, and also cross-selling some of these new product offerings into our existing base domestically. I think we would also emphasize there the continued growth that we expect in our global business. That finishes the formal presentation. We will now hand over to Daniel, who will just coordinate our Q&A session.

Speaker #1: Additional go-to-market channels in BCNT, and also cross-selling some of these new product offerings into our existing base domestically. I think we'd also emphasize there the continued growth that we expect in our global business.

Speaker #1: That finishes the formal presentation. We'll now hand over to Daniel, who will coordinate our Q&A session.

Speaker #2: Thanks, Peter. We have a couple of questions. Two questions from Stella Wang regarding the global segment. Stella says, "Great to see that the H2 new sales are picking up from H1."

[Company Representative] (Comms Group): Thanks, Peter. We have a couple of questions. Two questions from Stella Wang regarding the global segment. Stella says, Great to see that the H2 new sales picking up from H1. How far is it from meeting that AUD 20 million revenue run rate for the global business? Then on OpEx seemed to moderate in the second half. How do you plan to accelerate that new sales growth within global?

Daniel Ireland: Thanks, Peter. We have a couple of questions. Two questions from Stella Wang regarding the global segment. Stella says, Great to see that the H2 new sales picking up from H1. How far is it from meeting that AUD 20 million revenue run rate for the global business? Then on OpEx seemed to moderate in the second half. How do you plan to accelerate that new sales growth within global?

Speaker #2: How far are we from meeting that $20 million revenue run rate for the global business? And then on OPEX, OPEX seemed to moderate in the second half.

Speaker #2: How do you plan to accelerate that new sales growth within Global?

Speaker #1: Okay. Thank you for that question. Look, we haven't given any specific guidance to the market on where we think we'll get to with Global.

Peter McGrath: Okay. Thank you for that question. Look, we have not given any specific guidance to the market, on where we would think we will get to with global, but if you look at that growth that we have seen there, AUD 1.5 million, AUD 2 million per annum. We would expect at this stage that that growth to continue, and we are looking to expand our channels to market as well. I think, Stella, all things being equal, there is no reason why within probably a couple of years we could not get to that AUD 20 million revenue run rate. How are we going to accelerate that sales? I think, as mentioned, we are looking at some additional channels to markets and new offerings that we can take to our customers.

Speaker #1: But if you look at that growth that we've seen there, one and a half to two million per annum, we would expect at this stage for that growth to continue.

Speaker #1: And we're looking to expand our channels to market as well. So I think, Stella, all things being equal, there's no reason why within probably a couple of years we couldn't get to that $20 million revenue run-rate.

Speaker #1: So, how are we going to accelerate that sales? I think, as mentioned, we're looking at some additional channels to market and new offerings that we can take to our customers.

Speaker #1: We are looking to add greater levels of automation so that our customers can put orders in via portals, via API, etc. As we add these additional channels to market, particularly for larger carriers, those are the types of things they're wanting.

Peter McGrath: We are looking to add greater levels of automation so that our customers can look to put orders in via portals, via API, et cetera. As we add these more channels to market, particularly larger carriers, they are the types of things that they are wanting. So that is probably within our global business. The comment on OpEx. Yes, I think, yeah, OpEx has probably moderated at this stage. Obviously, we try to keep our OpEx, and our costs in general, within certain percentages of revenue, if you like. Because we want to continue to focus on growing, but growing responsibly, generating that EBITDA growth that you have seen in the past. We do also think that with AI and some of these automation-type offerings out there is going to be some great opportunities in our contact center space as well.

Speaker #1: So that's probably within our global business. The comment on OPEX—yes, I think OPEX is probably moderated at this stage. Obviously, we try to keep our OPEX and our costs in general within certain percentages of revenue, if you like.

Speaker #1: And because we want to continue to focus on growing, but growing responsibly, generating that EBITDA growth that you've seen in the past, we do also think that with AI and some of these automation-type offerings out there, there's going to be some great opportunities in our contact center space as well.

Speaker #1: And we're seeing that growth more widely across Asia-Pacific, which should help our global business as well. We provide some of the core services for contact center operators.

Peter McGrath: And we are seeing that growth more widely across Asia Pacific, which should help our global business as well. We provide some of the core services for contact center operators. All in all, we see the impacts of AI being positive across both our domestic and our global business.

Speaker #1: So, all in all, we see the impacts of AI being positive across both our domestic and our global business.

Speaker #2: Another question from Stella: Are there any acquisition opportunities in the AI-enabled contact center services space, and what are the potential sizes?

[Company Representative] (Comms Group): Another question from Stella. Are there any acquisition opportunities in the AI-enabled contact center services space? What are the potential sizes?

Daniel Ireland: Another question from Stella. Are there any acquisition opportunities in the AI-enabled contact center services space? What are the potential sizes?

Speaker #1: Okay, so to answer that question: Yes, there are opportunities out there that we've seen. We're not necessarily looking right now at something like that.

Peter McGrath: Okay. To answer that question, yes, there are opportunities out there that we have seen. We are not necessarily looking right now at something like that, but in terms of executing, but we have seen a number of these opportunities out there, and we kind of see that that is where the market is heading towards. We do deliver some contact center. We provide the core voice and IP telephony or UCaaS type services. We believe that AI-enabled contact centers are going to be very big as more and more corporates look to automate how they handle their customer interaction. Others that really did not think about that in the past will start to do that now.

Speaker #1: But in terms of executing, we have seen a number of these opportunities out there. We see that that's where the market is heading.

Speaker #1: We do deliver some contact center. We provide the core voice and IP telephony, or UCaaS-type services. We believe that AI-enabled contact centers are going to be very big as more and more corporates look to automate how they handle their customer interaction.

Speaker #1: Others that really didn't think about that in the past will start to do that now. Contact centers traditionally have been quite expensive, but if you can add that AI capability and use it not just for sales, but also to handle customer queries and inquiries, we think that that's going to really push the growth of that along.

Peter McGrath: Contact centers traditionally have been quite expensive, but if you can add that AI capability and use it, not just for sales, but also to handle customer queries and inquiries, we think that is going to really push the growth of that along. It is going to be one of the key use cases in that whole AI area. Stella, I think we could deduce from that, yes, there might be some acquisition opportunities we can look at, but we are also getting some product sets from existing suppliers that we can use to offer those products in the market.

Speaker #1: It's going to be one of the key use cases in that whole AI area. So Stella, I think we could deduce from that, yes, there might be some acquisition opportunities we can look at, but we're also getting some product sets from existing suppliers that we can use to offer those products in the market.

Speaker #2: We have a question from Rod. What percentage of FY26 revenues and underlying EBITDA was attributable to On Platinum?

[Company Representative] (Comms Group): We have a question from Rod De Abruzz. What percentage of FY26 revenues and underlying EBITDA was attributable to onPlatinum?

Daniel Ireland: We have a question from Rod De Abruzz. What percentage of FY26 revenues and underlying EBITDA was attributable to onPlatinum?

Speaker #1: Okay, so Rod, I think if you had a look at the pack there, and we've got the breakdowns, we'll just turn to that. Daniel, you might even have those numbers in front of you.

Peter McGrath: Okay. Rod, I think if you had a look at the pack there, and we have the breakdown. I will just turn to that. Daniel, you might even have those numbers in front of you. If we look at the revenue breakdown, the revenue for onPlatinum was AUD 22.3 million out of AUD 74.5 million, and the underlying EBITDA for onPlatinum was AUD 3.6 million, I believe.

Speaker #1: But if we look at the revenue breakdown, the revenue for OnPlatinum was $22.3 million out of $74.5 million. And the underlying EBITDA for OnPlatinum was $2 million.

Speaker #1: Sorry, it was $3.6 million, I believe.

Speaker #2: Yep, that's correct.

[Company Representative] (Comms Group): Yeah, that is correct.

Daniel Ireland: Yeah, that is correct.

Peter McGrath: Out of a total of AUD 8.7 million.

Speaker #1: Out of a total of 8.7.

Speaker #2: Yes, we have a question from Brendan Gleeson: Will there be a return of capital once sale proceeds finalize?

[Company Representative] (Comms Group): Yep. We have a question from Brendan Gleeson. Will there be a return of capital once sale proceeds finalize?

Daniel Ireland: Yep. We have a question from Brendan Gleeson. Will there be a return of capital once sale proceeds finalize?

Speaker #1: Yes, there will be. Brendan, thank you for that question. We have signaled to the market already when we put that On Platinum sale announcement out.

Peter McGrath: Yes, there will be. Brendan, thank you for that question. We have signaled to the market already when we put that onPlatinum sale announcement out back a month and a half ago, that yes, we will be looking at making a return of capital/distribution to shareholders once the sale proceeds finalize, and we plan to have further details on that once completion has occurred.

Speaker #1: Back a month, month and a half ago, that yes, we'll be looking at making a return of capital slash distribution to shareholders once the sale proceeds finalize.

Speaker #1: And we plan to provide further details on that once completion has occurred.

Speaker #2: We have a question from Richard Hemming: Is growth expected from more carriers, or more multinationals?

[Company Representative] (Comms Group): We have a question from Richard Hemming. Is growth expected from more carriers or more multinationals?

Daniel Ireland: We have a question from Richard Hemming. Is growth expected from more carriers or more multinationals?

Speaker #1: Richard, a lot of the growth that we get today is from carriers who then provide our solutions to their multinationals. So, in fact, it's growth from both.

Peter McGrath: Richard, a lot of the growth that we get today is from carriers who then provide our solutions to their multinationals. So in fact, it is growth from both. We are continuing to win great quality corporates via a number of our key partners, and we would expect that to continue. We look at the market in the unified comms space, particularly in the global space. One commentator made a comment, "Well, hasn't IP telephony been widely rolled out across the market many years ago?" I think in certain domestic markets, like in Australia and maybe the UK and maybe the US, I think IP telephony is used quite widely for particularly smaller business and SME.

Speaker #1: We're continuing to win great quality corporates via a number of our key partners, and we'd expect that to continue. We look at the market in the unified comms space, particularly in the global space.

Speaker #1: So one commentator made a comment, well, has IP telephony been widely rolled out across the market many years ago? I think in certain domestic markets, like in Australia and maybe the UK and maybe the US, I think IP telephony is used quite widely, particularly for smaller business and.

Speaker #1: For me, the new trend that we've seen over the last few years is these large players, such as Microsoft, Cisco, and others, providing their own cloud PBX. Corporates are moving to that because, for various reasons, they like the security and want the same solution for all their operations. But more importantly, they now want to roll this out across the world.

Peter McGrath: The new trend that we've seen over the last few years is these large players such as Microsoft, Cisco, and others, providing their own cloud PABX and corporates moving to that because for various reasons, they like the security, they want the same solution for all their staff. More importantly, they now want to roll this out across the world. That is a new thing that we're seeing, particularly across the likes of Asia-Pacific, where a lot of the carriers don't have the capabilities that we have. Also, the big multinationals really want to deal with a carrier that they trust. Very few of them are going to go into a market. They're used to dealing with local carriers in difficult markets, and it's not a pleasant experience. So we can offer them that single point of contact, fully account managed, 24 by 7 response.

Speaker #1: And that is a new thing that we're seeing, particularly across the likes of Asia Pacific, where a lot of the carriers don't have the capabilities that we have.

Speaker #1: And also, the big multinationals really want to deal with a carrier that they trust. Very few of them are going to go into a market.

Speaker #1: They're used to dealing with local carriers in difficult markets, and it's not a pleasant experience. So, we can offer them that single point of contact, fully account-managed, 24x7 response.

Speaker #1: We can fix issues almost immediately, compared to them ringing a hotline—say, in Vietnam or somewhere—where they're dealing with everyone else. And also, we can deliver the solution that they want in various markets.

Peter McGrath: We can fix issues almost very quickly compared to them ringing a hotline, say in Vietnam or something, where they're dealing with everyone else. Also, we can deliver the solution that they want in various markets. So we'd expect to see growth from both carriers and multinationals. We do have some multinationals that we win business with as well. We have some multinationals who've been with us quite a number of years, some very large global companies, and they continue to come back to us all the time for the new countries they go into. Of more recent time, we've had a number of large Australian corporates, significant top 10, top 20 corporates, who've come to us for services in various parts of the world because today we're one of, well, in fact, we're the only Australian carrier that provides those services now.

Speaker #1: So we'd expect to see growth from both carriers and multinationals. Now, we do have some multinationals that we win business with as well. We have some multinationals who have been with us for quite a number of years, and very large global companies.

Speaker #1: And they continue to come back to us all the time for the new countries they go into. And of more recent time, we've had a number of larger Australian corporates—significant top 10, top 20 corporates—who've come to us for services in various parts of the world, because today, we're one of—well, in fact, we're the only Australian carrier that provides those services now.

Speaker #1: So hopefully, Richard, that answers those questions. Most of the growth we're seeing is coming from multinationals, but there's also growth from some of the over-the-top type providers who want some of those core voice services.

Peter McGrath: Hopefully, Richard, that answers those questions, but most of the growth we're seeing is coming from multinationals, but there's also growth from some of the over-the-top type providers who want some of those core voice services.

Speaker #2: We have a question.

[Company Representative] (Comms Group): Yeah.

Daniel Ireland: Yeah.

Peter McGrath: Yeah. Another question there about the growth strategy for the TasmaNet business. Look, the TasmaNet business, we did see a little bit of customer churn. We've talked about that in the written release there to the market, and that was churn that was already kind of baked in, if you like, through their receivership administration process. But we stabilized that base now. We're now starting to see good growth with some customers actually coming back who'd left during that receivership process, and we're winning some new business in a range of areas. Now, keep in mind that TasmaNet's strength is in private cloud. So that's if you like hosting and private compute on island in Tasmania, and that's typically targeted at government and large corporates. NBN and fiber and internet services, very high quality. They're the two key areas, private cloud and connectivity.

Speaker #1: Yeah, another question there about the growth strategy for the Tazminet business. Look, the Tazminet business, we did see a little bit of customer churn.

Speaker #1: We've talked about that in one of our written releases there to the market, and that was churn that was already kind of baked in, if you like, through their receivership administration process.

Speaker #1: But we've stabilized that base now, and we're now starting to see good growth, with some customers actually coming back who'd left during that receivership process. And we're winning some new business in a range of areas.

Speaker #1: Now, keep in mind that Tazminet's strength is in private cloud. So, that's if you like hosting and private compute on island in Tasmania, and that's typically targeted at government and large corporates.

Speaker #1: And then NBN and fiber and internet services are very high quality. They're the two key areas: private cloud and connectivity. We're also bringing a number of our products from the mainland, from our wider BCNT business, such as Microsoft Teams calling, some of our AI-enabled contact center solutions, and some of our security solutions as well.

Peter McGrath: We are also bringing a number of our products from the mainland, from our wider BC&T business, such as Microsoft Teams calling, some of our AI-enabled contact center solutions, some of our security solutions as well. I should add, TasmaNet has got some very good security solutions, particularly in the FortiFlex area. Across the board, we are seeing some great opportunities there. We are a key provider to government. Government needs to do more in all markets across Australia to equip themselves for this AI era. So they are modernizing their infrastructure, et cetera. Also, just in general, putting AI to one side, they want better systems. They need to be able to manage customers, and the way that they deal with members of the public needs to be modernized, whether that is health systems, health record systems, or just the way that they deal with customers.

Speaker #1: And I should add, Tazminet has got some very good security solutions, particularly in the Fortinet Flex area. So, across the board, we're seeing some great opportunities there.

Speaker #1: We are a key provider to government. Government needs to do more in all markets across Australia to equip themselves for this AI era, so they're modernizing their infrastructure, etc.

Speaker #1: And also, just in general—putting AI to one side—they want better systems. They need to be able to manage customers, and the way that they deal with members of the public needs to be modernized, whether that's health systems, health record systems, or just the way that they deal with customers.

Speaker #1: They want to automate a lot of those experiences as well. So, we actually see, across the board, some significant growth opportunities for our Tazminet business.

Peter McGrath: They want to automate a lot of those experiences as well. We actually see across the board some significant growth opportunities for our TasmaNet business, and that is mainly off the back of the strong existing position that we have. In terms of what is missing within that business and how far could it grow, look, we have a solid business there. We want to continue to see how we can invest and bring those additional products to market there as well. Make sure we have a really good go-to-market, some very good sales and marketing staff looking at increasing our channels to market Rod down there in Tasmania. There is a number of things that we are doing and in terms of how far you could grow that, we think that there is some significant growth opportunities for TasmaNet moving forward.

Speaker #1: And that's mainly off the back of the strong existing position that we have. In terms of what's missing within that business, and how far could it grow, we have a solid business there.

Speaker #1: We want to continue to see how we can invest and bring those additional products to market there as well. Make sure we have a really good go-to-market, some very good sales and marketing staff, looking at increasing our channels to market, Rod down there in Tasmania.

Speaker #1: So, there are a number of things that we're doing. And in terms of how far we could grow that, we think that there are some significant growth opportunities for Tazminet.

Speaker #1: Moving forward.

Speaker #2: Great. Well, that's all the questions that we have. I'd like to thank Peter and Matthew for going through the presentation, and thank you to everyone who attended the Comms Group FY26 conference call.

[Company Representative] (Comms Group): Great. Well, that is all the questions that we have. I would like to thank Peter and Matthew for going through the presentation and for everyone who attended the Comms Group FY26 conference call. Thank you.

Daniel Ireland: Great. Well, that is all the questions that we have. I would like to thank Peter and Matthew for going through the presentation and for everyone who attended the Comms Group FY26 conference call. Thank you.

Speaker #2: Thank you.

Speaker #1: Okay. Thank you, everyone.

Peter McGrath: Okay. Thank you everyone.

Speaker #3: Thank you.

Matthew Beale: Thank you.

Operator 2: Goodbye

Matthew Beale: Goodbye