5G Networks (ASX:5GN) is a B2B telecommunications provider. The company provides a telecommunications platform for business customers, complemented by a service offering which includes cloud-based solutions and data management.
In late March, the company announced that its MPLS data network was now live across all capital cities, offering customers download speeds of up to 10GB. The aim of the purchase was to help vertically integrate the 5G Network’s data and cloud-based services, for which it currently pays $3.8m a year to third-party providers.
For its FY20 outlook, the company is focused on optimising operational efficiencies, with continued expansion of its network and new and improved cloud-service capabilities with a launch planned for later this year.
5G Networks said its also well positioned for further volatility in the post-COVID environment, with the bulk of its revenues derived from recurring contracts.
Following this, 5G Networks snapped up the assets of national and international network operator ColoAU in a $2.9m deal allowing the telco carrier to significantly fast track its wholesale business.
In October of 2020, the IT services and telecommunications company received the green light to proceed with its proposed takeover of Australian digital services provider, Webcentral Group (ASX:WCG).
5G Networks made a profit of $6.3m for the FY2020, up 96 per cent from a year earlier. The takeover offer values WCG at $21.6m.