Comms Group to Unlock $30M from onPlatinum Sale, Eyes Debt Cut and Shareholder Returns
Comms Group Limited is set to divest its onPlatinum division for $30 million, aiming to strengthen its balance sheet and return capital to shareholders. The company maintains solid FY26 guidance, driven by organic growth and cost rationalisation.
- onPlatinum sold for $30 million with escrow conditions
- FY26 revenue guidance raised to $74-$75 million
- Underlying EBITDA expected between $8.0 million and $8.5 million
- Post-sale focus on debt reduction and shareholder distributions
- Global & Wholesale segment shows strongest organic growth
Strategic Divestment of onPlatinum for $30 Million
Comms Group Limited (ASX:CCG) has agreed to sell its onPlatinum division to Thinkex Holding Pty Ltd for a total consideration of $30 million. The deal includes an upfront payment of $28.5 million and an additional $1.5 million held in escrow for twelve months, subject to agreed conditions. Settlement is expected in the first quarter of FY27.
The divestment marks a significant step in simplifying Comms Group’s portfolio, allowing the company to concentrate on its core communications services across domestic and global markets. Proceeds from the sale are earmarked primarily for reducing net debt, which should bolster the company’s financial flexibility, as well as for returning capital to shareholders, signaling a shareholder-friendly approach.
Robust FY26 Guidance Reflects Growth and Efficiency
Despite the impending divestment, Comms Group has reaffirmed its FY26 revenue guidance at $74 million to $75 million, representing a roughly 30% increase from FY25. Underlying EBITDA is forecast between $8.0 million and $8.5 million, up significantly from $5.7 million in the prior year. This includes about $500,000 in duplicated mainland costs related to the integration of Next and TasmaNet, which remain on track.
The company highlights that earnings post-onPlatinum sale will be driven by its Communications & Collaboration and Global & Wholesale segments. Management is particularly focused on expanding the Global & Wholesale business, which is delivering the highest levels of organic revenue growth within the group.
Post-Divestment Business Structure and Outlook
Following the sale, Comms Group will operate through two main divisions: a Domestic Australian business providing communications and collaboration services to SMEs, corporate clients, and government; and a Global business offering unified communications and wholesale voice services to international enterprises and telcos.
The company plans to update the market with its FY27 financial outlook after the onPlatinum transaction settles, detailing how the capital proceeds will be allocated across debt repayment, tax obligations, and shareholder distributions. This phased approach reflects prudent financial management amid ongoing integration and growth initiatives.
Bottom Line?
With onPlatinum's sale poised to strengthen the balance sheet and fund shareholder returns, Comms Group's focus turns to accelerating growth in its Global & Wholesale segment and delivering on FY26 targets.
Questions in the middle?
- How will the divestment impact Comms Group’s FY27 growth trajectory and margin profile?
- What proportion of the sale proceeds will be allocated to shareholder distributions versus debt reduction?
- Can the Global & Wholesale division sustain its current organic growth momentum post-divestment?
