Vital (VTL) H2 2024 earnings summary

Executive summary

• Nearing completion of the first phase of a turnaround strategy, focusing on stabilizing operations, improving efficiency, and building sales channels amid challenging economic conditions.

• Revenue declined 4.5% year-over-year to $26.9m, mainly due to non-renewal of a low-margin contract and reduced fibre circuit connections.

• Adjusted EBITDA was $6.4m, flat year-over-year, with adjusted NPAT at $0.3m, down 45% from FY2023.

• Adjusted free cash flow reached $4.1m, up $1.2m from FY2023, aided by disciplined capital expenditure.

• Customer and employee Net Promoter Scores improved significantly, reflecting better engagement and satisfaction.

Financial highlights

• Revenue: $26.9m, down 4.5% year-over-year.

• Adjusted EBITDA: $6.4m, up 0.4% year-over-year; margin 23.9%.

• Adjusted NPAT: $0.3m, down 45% year-over-year.

• Adjusted free cash flow: $4.1m, up $1.2m from FY2023.

• Capital expenditure: $2.3m, down 33% year-over-year.

• Reported net profit: $27,000 (vs. $-183,000 in FY2023).

Outlook and guidance

• FY2025 expected to see flat or marginally higher revenue, with continued focus on cost efficiency and network asset returns.

• Turnaround metrics guidance for FY2025 to be provided later, pending sales pipeline developments.

• Economic conditions remain a risk to revenue growth expectations.