New user growth to drive 6x increase in revenue

Vonex is a full-service, award-winning telecommunications serviceprovider. Through its Retail division, the group sells mobile internet,traditional fixed lines, hosted Private Branch Exchange (PBX) and Voice overInternet Protocol (VoIP) services – predominately to SMEs. The company alsoprovides white-label products to wholesale customers. In addition, Vonex’sR&D arm develops new technologies; in the Dec 2018 quarter, the group willbe beta testing its Operator App, a multi-platform social media application,prior to a soft-launch in Europe.

InJune 2018, Vonex Limited (ASX:VN8) listed on the ASX after completing a A$6mIPO. After paying down debt and converting bonds to equity, VN8 is nowdebt-free; the strong balance sheet should allow the group to leverage off theFederal Government’s National Broadband Network (NBN) roll out and embark on amajor marketing drive to increase its registered PBX user base. In August 2018,VN8 announced a partnership with NASDAQ and TSX-listed Counter Path. We seeVN8’s marketing and partnering agreement with Counter Path – a well-regardedsupplier of soft phone technology - as a major positive. Having an officialsoft phone platform expands Vonex’s product offering, and should, we believe,assist in acquiring new customers and expanding revenue streams from existingcustomers.