Cellnet leverages iPhone boom into big October profit result
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Product distribution company Cellnet (ASX:CLT) got a revenue boost from the new iPhone launch in October.
The company provided a trading update where it said monthly pre-audit revenues came in at $12.6m.
Cellnet’s monthly result was “predominantly driven by increased sales of iPhone accessories”.
That followed Apple’s iPhone 12 launch on October 23, which saw the release of four new models.
Cellnet’s top line revenue of $12.6m was an 18 per cent increase compared to October last year.
But CLT said that income flowed through to net profit of $1.02m for the month — a 410 per cent increase.
Shares in the company more than doubled at the opening bell to pre-pandemic highs around 10c.
Cellnet CEO Dave Clark lauded the team’s preparation ahead of the big Apple event, which made this iPhone launch the “most successful yet”.
Clark said Cellnet’s gaming division was also a net-positive contributor to October earnings.
The October trading result follows on from what Cellnet said was a strong Q1, where it converted sales into profits before tax of $551,000 — a gain of 91 per cent.
For the June 2020 financial year, the company reported a net loss before tax of $1.96m, on annual revenues of $96.2m.
Cellnet said its improved bottom line is a result of a focus on higher-margin product channels and cost reduction, with “unaudited operating costs down 25pc year-on-year”.
Following on from the iPhone boom, Clark said Cellnet is well placed to continue its momentum in the lead up to Christmas.
The $10m market cap company has been an ASX mainstay over the years, having first listed in 1999 after being founded in 1992.
Its share price hit a dot-com high of around $1 in early 2000, but the stock has traded at or near 10c for most of the last decade.