This presentation contains certain statements that may constitute forward-looking information under applicable securities laws. All statements, other than those of historical fact, which address activities, events, outcomes, results, developments, performance or achievements that Webcentral anticipates or expects may or will occur in the future (in whole or in part) should be considered forward-looking information.
In some cases, forward-looking information is identiﬁed by the use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will", "would", and similar terms and phrases, including references to assumptions.
Such information may involve, but is not limited to, comments with respect to expectations, planned operations or future actions. These forward-looking statements are based on currently available information as of the date of this presentation but are subject to known and unknown risks,uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those expressed or implied by such forward-looking information. The forward-looking information contained in this presentation is expresslyqualiﬁed by this cautionary statement.
A number of risks, uncertainties and other factors could cause actual results to differ materially from the results discussed in the forward-lookinginformation, including, but not limited to, the following: risks associated with reliance on key personnel; ﬁnancial health of Webcentral and its related cash ﬂows; general industry and market conditions and growth rates; legislative and regulatory developments; general economic conditions and levels of economic activity; global ﬁnancial conditions; ﬁnancing risks; degree of competition in the industry; risks associated with the development of projects; changes in employee relations; and control of costs and expenses.
Forward-looking information reﬂects Webcentral's current beliefs and is based on information currently available to Webcentral and onassumptions it believes to be reasonable. The forward-looking information is made as of the date of this presentation and Webcentral assumesno obligation to update or revise such information to reﬂect new events or circumstances, except as may be required by applicable law.
Prospective investors should not read forward-looking information as guarantees of future performance or results and should not place undue reliance on forward-looking information. Nothing in this presentation is, or should be relied upon as, a promise or representation as to the future.
The results presented for the period ending 31 December 2020 are unaudited and subject to change following completion of the review for the Interim period ending 31 December 2020 by the company's auditors.
Ongoing EBITDA Improvements
Annualised EBITDA from Feb-21 to be $7-8m1with continued improvements as growth initiatives and cost synergies are implemented
Annualised free cash from Mar-21 to be $10-12m2
Industry transformation is driving considerable market expansion through the expected introduction of .au domains by auDA in 1H 20213with expected 25-35% growth in new domain name registrations
1. Normalised EBITDA before non-recurring costs, transaction, restructuring and option/share issue costs.
2. Assumes Sydney lease novation March 21 normalised.
3. AuDA to release new rules for .au domain names on 12 April 2021
"The completion of the takeover has delivered signiﬁcantvalue to both groups of shareholders. We are now focussed on our Strategic Transformation Program to improve customer experience, achieve revenue growth and simplify Webcentral's operations"
- Managing Director, Joe Demase.
Interim Results - Financial Commentary
•Domainregistration revenue increased in early 2020 as COVIDﬁrst started to impact the working environment, followed by a smalldecline in the second half of 2020
•Strong growth expected with the introduction of the .au domains from second half of 2021 - pre-registrations expected towardsthe end of ﬁrst half of 2021
•Emailservices remained steady through to Dec 20 and we expect this growth to continue
•Hostingservices impacted by same factors observed in domains with expected rebound in growth as we shift back to this core service, streamline suppliers and invest in customer online experience improvements
•Digital Marketingis a value add to our core products and will grow inline with their success
•Other Incomewill continue to decline over time as transitional service agreements are completed and property sublease income reduces in line with our smaller property footprint
Webcentral Group Limited
Jun-20 2HFY20 $000
Dec-20 1HFY21 $000
Revenue from Continuing Operations; Discontinued Operations and non-recurring adjustments not included
Overall revenue has declined due to the impact of COVID in 2020 and poor customer experience summarisied in these three main areas:
1. Support services (Voice, Chat and Email) - poor quality communication, slow responsiveness and repeated call backs
2. Console (Customer platform) experience - outdated processes impacting the customer experience including billing and service provisioning
3. Technical stability - Network and cloud issues have impacted customer experience which has impacted the service
We've undertaken a number of initiatives to address these issues.
Management is conﬁdent that revenue growth will return across allfour core services as these short term issues are resolved
• Public cloud, network and data centre services will migrate to 5GN over time with an expected 10% saving to WCG
• Labour costs expected to stabilise to $1.3m per month by Feb 21
• Outsourced labour will be moved onshore or delivered via 5GN technical and customer support teams
• Continued reduction in other overheads expected through 2021
• WCG will provide software development services to 5GN and other enterprise clients in the future
Domain Registries Public Cloud Telco Services Software and Licencing Outsourced Digital
Overhead Labour - Internal Outsourced Labour Marketing
Cloud Software Corporate & Compliance Bank charges & Merchant fees Doubtful and bad debts
Free Cash / EBITDA
Non-recurring costs and impairment expense2
Core and Growth Products Portfolio
Overview and Background
WCG is an ASX listed company servicing 330,000 small and medium businesses (SMB) customer across Australia and New Zealand. With 170 employee's we provide a range cloud enabling solutions to the business which consist of four key portfolio's:
Domain name registrations and renewals
Options (exercise at $0.485)1,300,000
February 23rd, 2021 market capitalisation (at $0.51/share)
WebCentral Group Limited published this content on 24 February 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 February 2021 22:59:07 UTC.