Tata, Syniverse post financial updates
Kicking off the quarterly financials, Tata Communications and Syniverse have published their latest results over the last 24 hours.
Reporting revenue growth and strong profitability, revenue from the data business increase 3% quarter on quarter (QoQ) and 3.5% year on year (YoY).
Meanwhile, Digital Platforms and Solutions saw revenue increase 5.2% QoQ and 6.7% YoY. Within that unit, , all segments except Collaboration witnessed double-digit YoY growth and strong sequential growth. Core Connectivity aw a revenue growth of 1.6% QoQ and 1.3% YoY.
Consolidated revenue came in at US$558.5 million, an increase of 0.3% QoQ, but a decline of 0.9% YoY. Consolidated EBITDA was $ 144.5 million, an increase of 3.5% YoY, with margins in at 25.9%, expanding by 110 BPs as compared to same quarter last year.
CFO Kabir Ahmed Shakir said: “Our performance demonstrates sustained progress in our journey towards our financial fitness. Healthy improvement in free cash flows and reduction in net debt provides us headroom to invest for future growth.”
Meanwhile, Syniverse said it is expecting its 2022 revenues to increase by as much as 10%, achieving a range of $840 million to $875 million. Furhter, it raised adjusted EBITDA forecast to a range of $235 million to $245 million, a 2% increase at the midpoint from its prior target of $236 million.
Demonstrating the strength in the enterprise sector, Enterprise revenue grew by $30 million and $102 million in Q4 and FY 2021, respectively, while growing to 42% of total revenue in FY 2021, up from 32% of total revenue in FY 2020.
On this the company said the future would see it " look more and more like a CPaaS and messaging-centric company while continuing to address the changing needs of the mobile ecosystem for its approximately 800 carrier and 450 enterprise customers". Further, the "twin secular trend tailwinds" of mobile messaging and 5G, are driving the double-digit revenue CAGR forecast.
“Today’s preliminary results show that we continue to execute our strategic growth plan and are very well positioned to deliver the mobile ecosystem solutions necessary to monetise 5G data and messaging and create long-term value for shareholders,” said Andrew Davies, CEO of Syniverse.
“We’re very encouraged by the strong growth momentum in our Carrier and Enterprise businesses.”
The figures were published alongside an investor presentation, which Syniverse said provide detailed preliminary unaudited financial results for the fourth quarter and full year ended November 30, 2021.
However, the firm is also preparing for its IPO, a plan first confirmed in August and enabled by the merger agreement with M3-Brigade Acquisition II Corp, a special purpose acquisition company (SPAC).
MBAC’s special meeting of shareholders to approve the merger is scheduled to be held on February 9, 2022.