GROWTH THE BOTTOM LINE FOR PIVOTEL
Written on the 20 April 2012
PIVOTEL has added $6 million to the bottom line in just one year and is looking to almost double in size by 2015.
The surging communications company counts most of that growth as organic, but is ready to pounce on any good investment opportunities this year.
The company splashed around $8 million over the past 18 months acquiring five companies including Just Mobile and Reward Mobile and a number of wholesale customer contracts.
The acquisitions have significantly increased the scale of Pivotel’s GSM resale and machine-to-machine business operations.
“The last financial year was quite a strong year for us,” says CEO Peter Bolger (pictured).
“We had some acquisitions and kept improving our revenue and profit as well. We have got some really good organic growth opportunities happening and that is where I see most of our growth coming from.”
Offshore expansion will include the establishment of an Indonesian joint venture with PT Amalgam Indocorpura to extend its reach.
“We have high expectations of generating sales revenue from that,” says Bolger.
Pivotel also has continued to attract more customers to the retail side of its business.
Although it bought two new brands, Bolger sees its satellite tracking service TracerTrak as the biggest growth area.
The technology is in high demand from large-scale mining operations, governments and those businesses that operate in remote locations.
The technology allows tracking of employees and vehicles. The devices also have SOS buttons that can get a pinpoint location on employees who are in trouble.
“There is an obligation on organisations to provide for the safety of their remote workers,” says Bolger.
Pivotel is also working to provide Next G services through a deal with Telstra and already has a deal with Vodaphone which has allowed it to access cheaper data for its customers.
The company says it will ‘keep an eye’ on the new National Broadband Network, but won’t be an early adopter of the network.
Bolger says the wholesale side of Pivotel’s business is also strong.
“There are a number of brands who use our services, but you wouldn’t know it because they are marketed under their own names,” he says.