Spirit Telecom : 2017-02-27 ST1 Half Year Results Commentary

Media Release 27 February 2017

SPIRIT TELECOM LIMITED FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2016

SPIRIT DELIVERS REVENUE AND EARNINGS GROWTH

Spirit Telecom Limited (ASX: ST1) ("Spirit")

31 Dec 2016	31 Dec 2015	Change
Revenue	$5.2m	$4.2m	23.2%
Gross Profit	$3.2 m	$2.2m	43.6%
Underlying EBITDA	$703,9231	$420,132	67.5%
Statutory NPAT	$58,989	$47,7542	23.4%

Spirit Telecom Limited (ASX: ST1) (Spirit), today released its financial results for the half year ended 31 December 2016 (H1/17). This result has been driven by a 30% growth of 'on-net' buildings, being 59 new buildings being connected. To meet growing demand Spirit has increased network capacity in both Melbourne and Sydney, installed a new PoP linked in Brisbane and finalised integration of the 'My Telecom' network. The recent acquisition of Phone Name Marketing has added another exciting value-add service for Spirit Customers and is being seamlessly integrated into the Spirit business.

The Company's revenue grew 23% over the period, importantly the 59 new buildings contributed to the total of

$1.6 million stemming from on-net buildings for Q2/17, up 41% on the same period last year. The number of Spirit on-net buildings now exceed 250.

Managing Director of Spirit Telecom, Geoff Neate, said:

"We are pleased with our first 6 months as a listed entity and have been true to our plan of organic growth and accretive acquisition activity. We have been able to successfully get ourselves ASX listed (June 26 2016), grow our building numbers and customer base, resulting in solid revenue and EBITDA growth and we have complete the Phone Name acquisition. In addition to this, we completed the My Telecom network integration and expect the Phone Name integration to be completed in April"

"We continue to make investment into revenue generating activities, supported by strong commercial outcomes and the Board is committed to providing increasing returns to shareholders."

About Spirit

1 Includes non-cash items; Directors LTI and Employee Share Scheme - $52,550

2 Spirit Telecom (Australia) Pty Ltd and not the listed entity

Spirit Telecom Limited is a modern telecommunications provider of ultra-fast Internet access and telephony services.

A fast growing niche Telecommunications Carrier, Spirit is focused on supplying fibre based broadband services to multi-dwelling user locations including residential, business, student accommodation, community housing and business parks.

Spirit was voted as being Australia's fastest Internet Service Provider (ISP) for 2015 by PCMag.com.

In December 2016 Spirit acquired Phone Names Marketing Pty Ltd. Phone Names owns and sells inbound 13, 1300 and 1800 smart numbers, including Domino's Pizza (1300 DOMINOS), Harvey Norman (1300 GO HARVEY) and Vodafone (1300 VODAFONE).

With more than 10-year brand awareness, Spirit prides itself on delivering real service to its Australian residential and commercial customers and provides customers with the highest quality product.

For more information, please visit www.spirit.com.au

For further information, please contact: Kate Hawker, Spirit Telecom Limited T: [phone], M: 0406 667 927, E: [e-mail]