Comms Group Ltd Agrees $30M onPlatinum Sale and Lifts FY26 Outlook
Comms Group agrees to sell onPlatinum for $30 million and lifts FY26 earnings outlook
Comms Group (ASX: CCG) has announced the sale of onPlatinum for $30 million to Thinkex Holding Pty Ltd, alongside an upgraded FY26 trading update. The transaction is positioned to strengthen the balance sheet while funding a planned capital return to shareholders.
Settlement is anticipated in Q1 FY27, subject to conditions precedent. The FY26 underlying earnings guidance is materially above the prior year, noting that the guidance includes a 12-month onPlatinum contribution.
When big ASX news breaks, our subscribers know first
Inside the $30 million onPlatinum divestment
The agreement sees onPlatinum sold to Thinkex Holding Pty Ltd, with the proceeds earmarked for both debt reduction and shareholder distributions. The valuation multiple applied to onPlatinum’s earnings contribution was not disclosed in the announcement.
Key terms of the transaction include:
- Total consideration: $30 million
- Upfront consideration: A$28.5 million
- Escrow: A$1.5 million held for twelve months, payable subject to completion of agreed conditions
- Settlement: anticipated Q1 FY27 (subject to conditions precedent)
After paying capital gains associated with the sale, the company has indicated capital will be deployed in accordance with its allocation framework, including:
- Reducing net debt and strengthening the Company’s balance sheet
- Providing a capital return/distribution to shareholders
It is worth noting that proceeds are to be applied after settling capital gains tax obligations linked to the sale, so the full $30 million does not flow directly to shareholders. The structure gives management funding optionality across debt reduction and returns of capital.
FY26 guidance and what’s left after the sale
Alongside the divestment, Comms Group provided an upgraded FY26 trading update. Importantly, the EBITDA guidance figure includes a 12-month onPlatinum contribution, so it does not yet reflect the post-sale run-rate of the continuing business.
The headline FY26 figures are as follows:
The FY26 guidance range reflects a sharp acceleration from prior-year levels, with record 1H FY26 results already showing revenue up 39% to $37.6 million and underlying EBITDA surging 87% to $4.5 million, alongside the group’s maiden interim dividend declaration.
- FY26 Revenue guidance: $74m – $75m
- FY26 Underlying EBITDA guidance: $8.0m – $8.5m, up from $5.7m in FY25 (subject to audit)
- Underlying EBITDA includes circa $500K in duplicated mainland costs within Next and TasmaNet
- TasmaNet integration remains on track with previous guidance
- Telco network consolidation rationalisation savings are in line with previous guidance
Following completion of the sale, the group will operate across two divisions:
- Communications & Collaboration services for SME, Corporate & Gov (Domestic/Australian business)
- Global & Wholesale Unified Communications for Global Enterprises & Wholesale Voice Services for Global Telcos and Application Service Providers
The company has confirmed that, once settlement is finalised, it will provide an updated FY27 financial outlook along with detail on how the proceeds will be applied across debt repayment, associated taxes, and shareholder distributions. No specific FY27 figures have been disclosed at this stage.
Revenue growth trajectory
Group revenue has expanded steadily over recent years through a combination of organic growth and acquisitions, leading into the FY26 guidance range.
| Period | 1st Half ($m) | 2nd Half ($m) | Total ($m) |
|---|---|---|---|
| FY22 | 17.3 | 23.7 | 41.0 |
| FY23 | 26.0 | 25.9 | 51.9 |
| FY24 | 27.0 | 28.5 | 55.5 |
| FY25 | 27.0 | 29.6 | 56.6 |
| FY26 | Guidance: $74m – $75m | — | |
The half-year split for FY26 has not been disclosed, with the company providing a full-year guidance range only.
Understanding wholesale and unified communications
A Global & Wholesale Unified Communications provider carries voice and communications traffic on behalf of other telecommunications companies and large enterprises. Management has flagged that the Global & Wholesale business is demonstrating the highest level of organic revenue growth within the group. With onPlatinum removed from the portfolio, this division is positioned as a central growth engine for the continuing business, aligning directly with the strategic pivot following the sale.
The next major ASX story will hit our subscribers first
The investment case after onPlatinum
The divestment monetises onPlatinum at a headline value of $30 million, providing capital that management intends to direct towards strengthening the balance sheet and returning value to shareholders. The transaction also sharpens the group’s focus onto its two remaining divisions.
Board capital allocation intent
After paying capital gains associated with the sale, capital will be deployed in accordance with its allocation framework, including reducing net debt and strengthening the Company’s balance sheet, and providing a capital return/distribution to shareholders.
Post-divestment, the company’s strategy centres on the Communications & Collaboration and Global & Wholesale Unified Communications segments, with the latter identified as the primary organic growth driver. The combination of a stronger balance sheet, prospective shareholder returns, and a more focused operating model frames the post-sale investment thesis.
What happens next
The immediate path forward is governed by the following steps:
- Settlement of the onPlatinum sale anticipated in Q1 FY27 (subject to conditions precedent)
- A$1.5 million escrow payable after twelve months, subject to agreed conditions
- Post-settlement: an updated FY27 financial outlook plus detail on capital application, including debt repayment, associated taxes, and shareholder distributions
With settlement targeted for Q1 FY27, investors will receive the company’s FY27 outlook and full capital deployment detail once the transaction completes, providing greater clarity on how the proceeds will ultimately be applied.
Don’t Miss the Next ASX Tech and Comms Opportunity
Big News Blast delivers FREE breaking ASX news and in-depth analysis directly to your inbox within minutes of release. Over 20,000+ subscribers are already getting the edge on market-moving announcements the moment they drop. Click the “Free Alerts” button at StockWire X to make sure you never miss another major deal, divestment, or earnings update.