Perth-based Dreamscape Networks (ASX:DN8) has revealed the progress of its transformation into a full-blown online solutions provider in its first full-year financial results as a publicly-listed company.
The company, listed on the Australian Securities Exchange (ASX), reported a statutory net loss (NPAT) of $13.9 million in its preliminary financial results.
However, this was largely due to a one-off $16.1 million expense stemming from its reverse-takeover of Pandora Enterprise Holdings - the move that ultimately saw it list on the ASX.
Ignoring this one-off cost, the company's financials for the year appear to be heading in the right direction. Revenue rose by eight per cent to $46.4 million, and net profit before the one-off cost was $2.1 million, in line with its prospectus forecast.
Pre-tax earnings (EBITDA), meanwhile, was up 36.7 per cent, to $10.8 million for the year.
Dreamscape is behind domain registry, Crazy Domains. During FY17, however, the company said it was focused on transitioning from a domain name registration provider to an online solutions business.
In the past seven months, it acquired Australian hosting provider, Net Logistics and Singapore-based hosting and domain provider Vodien Group in July for $29 million, to help propel its South East Asia growth strategy.
Dreamscape CEO, Mark Evans, said FY17 was a record year for the company, growing all sectors of the business and generating record cash and profits since its listing in December.
"This is an exciting time in Dreamscape Network's journey as we transition from being a domain name provider to a leading online solutions provider across Australia, New Zealand and South East Asia," Evans said. "We are well positioned to deliver increased revenues, free cash flow and earnings in FY18 as we continue to focus on executing our growth strategy."
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The company is made up of three units focused on domains, hosting and solutions. Dreamscape’s total bookings were up six per cent to $53.1 million with its hosting business growing 17 per cent to $22.2 million, solutions was up seven per cent to $6.2 million and domains up 0.8 per cent $24.7 million.
In FY18. the company stated it will focus on higher margin hosting and solutions growth, continuing its transition strategy towards an online solutions provider. Product innovation and development will also be a key focus to help drive growing sales.
The company finished the year with $17.7 million cash and cash equivalent, and no debt.
In December, Dreamscape completed a reverse acquisition of Pandora Enterprise and began trading on the ASX.
At the time of publication, Dreamscape was trading at $0.21.
