Comms Group Posts $37.6m Revenue and $4.48m EBITDA, Up 39% and 87% Respectively
Comms Group Limited reported a robust half-year performance, driven by the TasmaNet acquisition and organic growth across its divisions, leading to a 39% revenue increase and a near doubling of underlying EBITDA.
- Revenue rises 39.2% to $37.64 million
- Underlying EBITDA nearly doubles to $4.48 million
- Full six-month contribution from TasmaNet acquisition
- Refinanced term loan facilities with Westpac
- Declared fully franked interim dividend of 0.125 cents per share
Strong Half-Year Growth Driven by Acquisition and Organic Expansion
Comms Group Limited has delivered a compelling financial performance for the six months ending 31 December 2025, reporting a 39.2% increase in revenue to $37.64 million compared to the prior corresponding period. This growth was underpinned by the full six-month contribution from its June 2025 acquisition of TasmaNet, alongside solid organic growth across its Global, SME, and ICT divisions.
The company’s underlying EBITDA surged to $4.48 million, nearly doubling from $2.39 million in the previous corresponding period. This improvement reflects not only the integration benefits of TasmaNet but also enhanced operational efficiencies and increased sales volumes across all business segments.
Segment Performance and Acquisition Integration
Comms Group’s three core operating segments; Global, SME, and ICT; all contributed to the uplift in earnings. The SME division, which absorbed the TasmaNet business, showed positive underlying revenue growth even when excluding the acquired customers, indicating healthy organic momentum. The Global and ICT divisions also recorded significant revenue and earnings increases, highlighting the group’s diversified revenue streams.
The acquisition of TasmaNet, finalized in mid-2025, added approximately $8.91 million in revenue and $1.16 million in EBITDA for the half-year. The integration process appears to be progressing smoothly, with the acquired business’s networks, systems, and customer base effectively merged into the SME division.
Financial Position and Refinancing
On the financing front, Comms Group refinanced its term loan facilities with Westpac Banking Corporation, repaying the previous Regal Tactical Credit Fund loan in full. The new $8 million term loan facility, along with other banking arrangements, provides the group with increased financial flexibility to support future acquisitions and growth initiatives.
Despite the increased borrowings related to the acquisition and refinancing, the company maintains a solid cash position, with $4 million in cash and cash equivalents at the end of the period. The group also declared a fully franked interim dividend of 0.125 cents per share, signalling confidence in its ongoing cash flow generation.
Outlook and Market Implications
While the half-year results demonstrate strong momentum, the full impact of the TasmaNet acquisition and the benefits of the refinancing will be clearer in the coming periods. Investors will be watching closely for sustained organic growth in the SME and ICT divisions and the group’s ability to leverage its enhanced balance sheet for further strategic acquisitions.
The company’s earnings per share improved to 0.21 cents, reversing losses from the prior period, and net tangible assets per share showed a modest improvement, though still negative at (2.07) cents. This suggests that while profitability is improving, the balance sheet remains a focus area for management.
Bottom Line?
Comms Group’s strong half-year results set the stage for a pivotal year ahead as it consolidates acquisitions and leverages new financing to fuel growth.
Questions in the middle?
- How will Comms Group sustain organic growth post-TasmaNet integration?
- What impact will the new Westpac financing have on future acquisition strategies?
- Can the company improve its net tangible asset position while maintaining profitability?
