Vonex Limited reported a significant reduction in net loss alongside operational improvements and a strengthened balance sheet, while advancing a major acquisition scheme with MaxoTel.
- 7.1% revenue decline due to post-migration churn
- Net loss after tax reduced by 91.2% to $118k
- EBITDA rose 6.7% to $5.7 million
- Raised $13.89 million via entitlement offer to repay $13 million debt
- Scheme of Arrangement with MaxoTel expected to complete in October 2025
Financial Performance and Operational Resilience
Vonex Limited (ASX, VN8) has released its Annual Financial Report for the fiscal year ending 30 June 2025, revealing a mixed but largely positive performance. While revenue declined by 7.1%, largely attributed to residual post-migration customer churn, the company achieved a remarkable 91.2% reduction in net loss after tax, bringing it down to just $118,000. This improvement was underpinned by a 6.7% increase in EBITDA to $5.7 million, signaling operational strength despite top-line pressures.
The company’s focus on disciplined cost control, strategic infrastructure investments, and product innovation has helped it maintain competitive positioning in the Australian telecommunications sector. These efforts have also translated into enhanced customer experience, as reflected in Vonex’s industry-leading complaint metrics.
Capital Management and Debt Reduction
Vonex’s capital management strategy was a highlight of FY25. In February, the company completed a fully underwritten 1-for-1 non-renounceable entitlement offer, raising approximately $13.89 million at $0.037 per share. This capital raise was strongly supported by shareholders, including the largest shareholder MaxoTel, who took up its full entitlement and partially underwrote the shortfall.
The proceeds were primarily used to repay $13 million of debt owed to Longreach, significantly improving Vonex’s capital structure. Additionally, Vonex refinanced its remaining $10 million debt facility with Westpac Banking Corporation under improved terms and a longer maturity date in March 2028. The company has continued to reduce principal on this facility, enhancing its financial flexibility.
Operational Enhancements and Product Innovation
Operationally, Vonex made meaningful strides by expanding its Points of Presence (PoPs) in Perth and Adelaide, which reduces latency and improves service reliability for both wholesale and direct customers. The launch of a new softphone application across mobile and desktop platforms offers customers a more intuitive and feature-rich communication experience.
Development of the Link 2.0 platform is ongoing, with plans to extend access to wholesale partners and approved direct customers in FY26. The company is also actively exploring AI-enabled product opportunities, aiming for potential launches in the coming fiscal year.
Scheme of Arrangement with MaxoTel
Vonex is progressing a Scheme of Arrangement with MaxoTel, announced in July 2025, for the acquisition of all remaining shares not already owned by MaxoTel. The scheme is subject to shareholder and court approvals, with implementation expected in October 2025. The Board and Independent Expert have confirmed that the FY25 results do not materially affect the information or recommendations previously provided to shareholders.
Until the scheme’s completion, Vonex remains focused on delivering value to customers, employees, and shareholders, continuing business as usual under the current management team.
Bottom Line?
Vonex’s FY25 results set the stage for a pivotal year ahead as it balances operational recovery with a transformative ownership change.
Questions in the middle?
- How will Vonex reverse the revenue decline caused by post-migration churn in FY26?
- What impact will the MaxoTel acquisition have on Vonex’s strategic direction and market positioning?
- When and how will Vonex integrate AI-enabled products into its service offerings?