news Fibre-optic broadband provider Spirit Telecom has released a shareholder update to the market, stating that it continues to expand its superfast broadband service to new buildings and that it is considering making acquisitions that would “complement” the firm’s direction.
Previously called Arunta Resources, the company specialises in providing optic fibre-based superfast broadband to apartment blocks and other buildings.
In the latest report, Spirit said that it has added 50 new commercial and residential buildings to its network in the first half of 2016. The figure represents a growth of 25% in building numbers, the firm said.
Notably, following its launch of 200/200Mbps broadband last year, the firm has now installed 400/400Mbps at premier residential block Freshwater Place in Melbourne.
The move makes Freshwater Place “arguably the fastest residential Internet building in Australia”, Spirit said.
Spirit said it has also increased its marketing expenditure, thanks to funds raised from its ASX listing in late June, and has grown its numbers of commercial customers.
The June reverse listing of Arunta Resources as Spirit Telecom Limited saw the firm raise around $2.6 million. After “listing expenses and commitments”, Spirit expects the cash available to fund growth and business development to be $2.2 million at the close of the financial year.
The firm added that its acquisition of My Telecom last year has brought benefits for Spirit through the continuing migration of the My Telecom network to its own.
“This enabled better product delivery to the MYT buildings, as well as operational leverage gained through the network consolidation,” Spirit said.
Spirit expects the migration to be completed “within the next quarter”.
In addition to marketing and business development expenditure, Spirit has also focused investment efforts on its core network upgrade and expansion.
As part of this process, and “due to the demand of business in Queensland”, Spirit has recently agreed to expand its network to a NextDC data centre in Brisbane, and is in the process of upgrading its Melbourne infrastructure (also with NextDC), as well as Sydney, with the data centre provided by Equinix.
These changes are aimed to “accommodate the increase in demand and maintain the current network performance”, the firm explained.
Finally, Spirit said it has now started seeking a “suitable target for acquisition”.
“An external company has been engaged to assist the process of finding a suitable company that would complement Spirit’s direction,” it said.