How Comms Group Plans to Hit $75M Revenue After TasmaNet Buyout
Comms Group Limited reported a steady FY25 with revenue growth and a strong start to FY26, driven by the recent TasmaNet acquisition and expanding global contracts. The company is targeting over $75 million in annualised revenue and aims to boost EBITDA to $9-10 million.
- FY25 revenue up 2% to $56.6 million, top-end EBITDA guidance met
- TasmaNet acquisition completed June 2025, integration on track
- Q1 FY26 revenue surged 41.6%, EBITDA doubled year-on-year
- New annual recurring revenue (ARR) contracts up 35% in FY25
- Strategic focus on debt reduction, technology investment, and dividend continuity
Steady Growth Amid Strategic Acquisition
Comms Group Limited (ASX, CCG) closed FY25 with total revenue of $56.6 million, marking a modest 2% increase over the prior year and hitting the upper range of its EBITDA guidance at $5.7 million. This performance reflects a combination of organic growth and the strategic acquisition of Tasmanian telecommunications provider TasmaNet in June 2025, which contributed $0.7 million in revenue during the period.
The acquisition of TasmaNet is a pivotal move for Comms Group, expanding its footprint in the Australian market and strengthening its managed IT and cloud services portfolio. Integration efforts are progressing smoothly, setting the stage for accelerated growth in FY26.
Robust Start to FY26 Signals Momentum
Early trading in FY26 has been notably strong, with unaudited Q1 revenue rising 41.6% to $19.4 million compared to the prior corresponding period. Underlying EBITDA doubled to $2.2 million, underscoring improved operational leverage and successful contract wins. The company has secured $4.6 million in new annual recurring revenue (ARR) year-to-date, including a significant contract with a leading foreign government organisation in Asia valued at over $70,000 in monthly recurring revenue.
Comms Group’s global business division continues to gain traction, having onboarded more than 80 Australian and international customers so far in FY26. This growth is underpinned by the company’s expertise in unified communications as a service (UCaaS) and wholesale voice services, catering to enterprise and government clients across the Asia-Pacific region.
Strategic Priorities and Outlook
Looking ahead, Comms Group aims to achieve an annualised run-rate revenue exceeding $75 million and an underlying EBITDA between $9 million and $10 million. Management’s priorities include reducing debt incurred from the TasmaNet acquisition through strong cash flow generation, investing in technology to maintain competitive advantage, and pursuing both organic and inorganic growth opportunities.
The company also plans to continue dividend payments, balancing shareholder returns with reinvestment in growth initiatives. A refinancing offer from a leading commercial bank is expected to improve debt terms, further supporting financial flexibility.
Comms Group’s strategy focuses on leveraging its Asia-Pacific presence to serve multinational corporations, upselling additional products and services to strategic accounts, and streamlining operations through digital transformation and network rationalisation.
Navigating Forward with Confidence
While forward-looking statements carry inherent uncertainties, Comms Group’s recent performance and strategic moves position it well to capitalize on the growing demand for cloud communications and managed IT solutions. The company’s disciplined approach to capital management and focus on integration execution will be critical as it scales.
Bottom Line?
Comms Group’s FY26 trajectory hinges on seamless TasmaNet integration and continued contract momentum to meet ambitious revenue and EBITDA targets.
Questions in the middle?
- How will Comms Group manage debt reduction while maintaining investment in growth?
- What impact will the TasmaNet acquisition have on long-term profitability and operational efficiency?
- Can the company sustain its strong new contract wins amid increasing competition in cloud communications?
