Shares in MNF Group Ltd (ASX: MNF) closed 17.92% lower on Tuesday, down $1.05 to $4.81 after the integrated telecommunications software and network provider reported its full-year results, posting a net profit after tax (NPAT) of $11.9m, down 2%.
Revenue grew 15% to $220.7 million, with gross margin increasing by 18% to $69 million.
Earnings before interest expense, tax, depreciation and amortisation (EBITDA) rose by 3% to $24.6 million, which MNF says was impacted by a one-off investment into the Pennytel brand launch of $2.3 million.
CEO Rene Sugo said: “We are pleased with our Gross Margin growth, which was driven by strong growth across all segments: Domestic Wholesale (up 15%), Global Wholesale (up 17%) and Domestic Retail (up 22%).”
The company declared a final dividend of 4.05 cents per share. The total dividend for the full year has increased 1% to 8.35 cents per share, fully franked.
MNF Group says it has adopted a four-dimensional growth strategy, including growth by geographic expansion, enhancing software capabilities, customer acquisition and customer expansion and believes it is well placed to execute this growth strategy in the short and longer term.
Since the beginning of 2018, the MNF Group Ltd share price has declined by 24.37% compared to the S&P/ASX 200 Index which has gained 3.95% in the period.
Peer in the tech and telecommunications sector Speedcast International Ltd (ASX: SDA) also plummeted lower today, plummeting 37.41% lower today, with its down 29% in the last 3 months.