Connxion expects to swing to FY11 profit

Connxion expects to swing to FY11 profit

Data and transaction services provider Connxion Ventures (ASX:CXN) expects to swing to profit in FY11, after a widened loss this financial year.

In a presentation, the company said it expects net profit of $1.8 million in FY11, compared to a forecast loss of $4.6 million. In FY09, net profit was $2.6 million.

Revenue, by contrast, is expected to have grown 186% to $11.2 million in FY10, and to grow 245% to $38.6 million in FY11.

Connxion said these forecasts reflect FY10 being a year of restructuring and integration, as the FY10 result reflects less than 6 months' profit from its acquisitions of Coverdrive, Sonnet, KAZ and Peppers and Rogers over the year.

But the FY11 results will be augmented by a full years' worth of contributions from these businesses.

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Tags Mergers and acquisitionsConnxionGuidance

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