Hansen Technologies Posts 11% Revenue Growth, Acquires Digitalk for A$66M

• FY25 revenue up 11.2% to $392.5 million with strong EBITDA margin expansion
• Signed major five-year contracts including a $50 million deal with VMO2
• Acquisition of Digitalk expands Communications & Media portfolio and recurring SaaS revenue
• Advanced AI integration driving operational efficiencies and cost savings
• Sustainability progress with carbon neutrality and emissions cut ahead of schedule

Strong Financial Performance and Strategic Wins

Hansen Technologies (ASX, HSN) delivered a compelling FY25 performance, reporting an 11.2% increase in operating revenue to $392.5 million. Underlying EBITDA surged 20.9% to $111.7 million, reflecting disciplined cost management and operational leverage. The Communications & Media segment grew 15%, buoyed by ongoing digital transformation projects, while Energy & Utilities revenue rose 8.3%, supported by new contracts and recent acquisitions.

Key contract wins included a transformative $50 million five-year agreement with VMO2, a joint venture between Telefónica and Liberty Global, alongside a strategic $16 million deal with one of the largest renewable energy portfolios in the US. These deals underscore Hansen’s expanding footprint in critical global markets.

Digitalk Acquisition, Expanding SaaS and Market Reach

In a significant strategic move, Hansen announced the acquisition of UK-based Digitalk for approximately A$66.4 million. Digitalk provides cloud-based Mobile Virtual Network Operator (MVNO) and interconnect platforms, serving around 150 customers worldwide, including Tier 1 operators like Vodafone. The deal, expected to close pending regulatory approval, is immediately accretive to earnings and enhances Hansen’s recurring SaaS revenue mix.

Digitalk’s technology complements Hansen’s existing Communications & Media suite, enabling faster brand launches and streamlined subscriber management. The acquisition opens cross-selling opportunities and strengthens Hansen’s position as a global leader in communications software.

AI Integration and Sustainability Drive Operational Excellence

Hansen is leveraging AI across its platforms to boost productivity and reduce costs. AI-driven automation shortens quality assurance cycles, accelerates customer support, and mitigates data migration risks. These efficiencies support margin expansion and position Hansen for long-term competitive advantage.

On sustainability, Hansen has maintained carbon neutrality in Australia for four consecutive years and achieved a 40% reduction in emissions ahead of schedule. The company’s ESG credentials were recently recognized with an EcoVadis 'Committed' badge and an MSCI ESG rating upgrade to AA, reflecting strong governance and climate risk management.

Outlook and Board Changes

Looking ahead, Hansen is confident in delivering 5–7% organic growth and sustaining an underlying EBITDA margin of at least 30% over the medium term. The company’s recurring revenue base, combined with sector tailwinds like decarbonisation and 5G rollout, provides a solid foundation for growth.

Notably, Deputy Chairman Bruce Adams retired after 25 years of service, leaving a legacy of steady governance and strategic insight. Shareholders also approved key resolutions, including the re-election of director Lisa Pendlebury and a performance rights grant to CEO Andrew Hansen, aligning leadership incentives with long-term value creation.

Bottom Line?

Hansen’s FY25 momentum, bolstered by AI innovation and strategic acquisitions, sets the stage for sustained growth amid evolving industry dynamics.

Questions in the middle?

• How will Hansen integrate Digitalk’s technology and customer base to maximise cross-selling?
• What specific AI-driven cost savings can investors expect to materialise in FY26 and beyond?
• How might Hansen’s sustainability initiatives influence customer acquisition and retention in competitive markets?