Connxion forecasts growth in FY11

Data and transaction services company Connxion Ventures (ASX:CXN) expects to increase its Q1 revenue 502 per cent to $6.8m, as it grows its Asian operations

Data and transaction services company Connxion Ventures (ASX:CXN) has forecast continued growth for FY11.

The company recently reported a 502 per cent increase in Q1 revenue to $6.8 million, on ebitda of $930,000.

“This was a pleasing start to the year, and despite the encouraging growth in revenue [and] margins CXN is still at the very early stages of its growth,” Connxion CEO Bill Brooks said.

Ebitda margins, which increased to nearly 15 per cent in Q1, will likely raise further, he said.

“Margins growth is encouraging as we benefit from the contribution of new, higher margin contracts and our lower operating cost base. This trend is expected to continue,” he said.

“Our priority is to build on the first quarter performance [to] fast-track our growth in Asia, with a focus on Singapore and China.”

Proceeds from a recent $1.6 million capital raising will go towards these goals, he said.

Connxion's emerging Asian operations took in revenue of around $2.3 million – or 30 per cent of Connxion's totals – in Q1.

CXN shares are today trading eight per cent higher at $0.027.

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