Vonex quarterly results fly high on the back of Qantas partnership

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Originally Published By Imelda Cotton in SmallCaps, read the original article here.

Telecommunications company Vonex (ASX: VN8) has posted healthy results for the September quarter, adding $1.64 million in new retail and wholesale business and recording a 25% quarter-on-quarter increase.

More than half of the new sales were driven by the Qantas Business Rewards (QBR) program, launched in August in partnership with Qantas Airways (ASX: QAN).

Under the terms of the partnership, Vonex is providing a voice over internet protocol (VoIP) and hosted phone system to the program, enabling the QBR program’s 250,000 small-to-medium business members to earn unlimited monthly QBR points for every purchase made through Vonex’s monthly ONdesk cloud‐based phone plans.

Plans include Vonex’s Traveller app, and Commercial, Business, or Executive advanced plans which are accompanied by the Yealink T5 series of advanced IP desktop phones with built‐in Bluetooth and WiFi.

Business customers were also eligible to earn up to 5,000 bonus points for taking up ONdesk cloud‐based phone plans before year end.

“In addition to stimulating active user and revenue growth, the [Qantas] rewards alliance has improved the quality of [its] book of business, attracting longer-term contracts of typically three years rather than two, and higher minimum spend commitments of typically $30 to $50 per user per month,” the company reported.

Vonex’s recently-launched digital marketing strategy had an immediate impact on quarterly figures, delivering a 29% increase in monthly leads generated from social media ad campaigns alongside a 6% reduction in marketing spend.

Vonex managing director Matt Fahey welcomed the positive results.

“We are pleased to see our key success metrics of user growth, new sales and total contract value all continuing to trend positively – it reflects the strength of our proposition to new and existing business customers, and reinforces the value of our alignment with Qantas, which presents significant ongoing growth potential,” he said.

“We are now reaping the benefits of having revitalised our marketing campaigns in recent months and have built a solid platform for sustainable growth in our retail business.”

Mr Fahey said the company recently surpassed 33,000 registered active subscribers – or Private Branch Exchange (PBX) users – to its cloud-based phone system platform and cited the achievement as a key indicator of business development progress as it chases the multi-billion-dollar Australian market for telco services to small and medium enterprises.

At midday, shares in Vonex were trading 7.14% higher at $0.09, while shares in Qantas Airways were down 0.16% to $6.31.

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