Inabox rings up strong revenues and profits before its upcoming IPO

With the telco industry constantly evolving it is a challenge for a new company to establish itself and operate profitably.  Retail Service Providers (RSPs) are faced with the prospect of committing significant investment to bring a complete range of telco products and services effectively to market.

Sydney-based Inabox, with its primary brand Telcoinabox, has reversed the business model by providing a turnkey service for RSPs.  RSPs can access cutting-edge telecommunications products (voice, mobile, data) and essential back-office services including billing, customer and tech support and provisioning.

Inabox has a 10 year track record and is the brainchild of its Managing Director, Damian Kay, “Inabox is the engine room behind retail service providers so they can dedicate resources to sales, marketing and customer acquisition,” said Kay highlighting the clear benefits to users. “We have strong supply relationships with Telstra, Optus, AAPT and NBN.  We have the infrastructure in place to offer economies of scale and the technical expertise to ensure the integration with an RSP runs smoothly 24/7.  Most importantly, we are purely a wholesaler and do not compete with our clients.”

This approach has been crucial to the company’s success to date.  The group is on track for $44M in revenues, and a $3M EBITDA result based on the current run rate in this financial year.  But these milestones are just the beginning for this ambitious young telco.  These financial fundamentals also provide the ideal background to Inabox’s pre-IPO activities.

“In mid 2013, an IPO is planned to fund the company’s strategic growth plan.  We have a strong network and already support over 200 RSPs across Australia.”  With its capital raising currently listed on Wholesale Investor, there has been considerable interest attracted from investors Australia-wide.

“Inabox is one of the very few wholesalers able to provide a full end-to-end bespoke solution to its clients.  For many telcos it is essential they bring new services to market under their own brand and retain customer ownership.  After our IPO we can capitalise on pent-up demand in the marketplace,” said Mr Kay who highlights the strength in the small cap telco market.  “The small cap telco market outperforms the sector because of the excellent growth potential, but companies can be nimble enough to respond quickly to market influences.”  Inabox is the definition of an emerging telco with its high growth, high potential and robust performance to date.