For the 2017 financial year, the company’s Vodafone mobile play accounted for only AU$3.6 million of its AU$289.5 million revenue total as it readies the launch of its NBN offering on the telco’s network.
For the 2017 financial year, online retailer Kogan.com reported pro forma after-tax profit of AU$7.2 million, an 800 percent increase on last year’s AU$800,000.
Pro forma earnings before interest, tax, depreciation, and amortisation (EBITDA) came in at AU$13.2 million on revenue of AU$289.5 million, with revenue increasing 37.1 percent year on year.
The company has just begun its first full-year as a public company, after making its Australian Securities Exchange (ASX) debut in July 2016 .
At time of IPO, Kogan offered shares at AU$1.80 each to raise AU$50 million, giving the company a market capitalisation of AU$168 million.
The company said on Friday that significant funds raised from the IPO have since been invested in accelerating Kogan.com’s growth strategy, including investment in its private label products.
Private label brought in AU$93.1 million of the AU$289.5 million total revenue for the 12-month period, while Kogan Travel accounted for AU$6.2 million and Kogan Mobile for AU$3.6 million.
Kogan Mobile, which was relaunched on Vodafone’s 3G network in October 2015, accounted for AU$3.6 million of the company’s total revenue.
In April last year, the company announced Kogan Mobile customers would be able to use Vodafone Australia’s 4G network, with all new and existing customers transitioned over to the higher-speed network in June 2016 without any increase in pricing.
Under the arrangement with the telecommunications provider, Vodafone is responsible for operations, while Kogan is responsible for branding, marketing, and customer acquisition, the company explained.
In June, Kogan and Vodafone extended their partnership, signing an agreement to use the latter’s network to launch National Broadband Network (NBN) services in 2018 .
According to the company, the agreements will see Kogan.com commence offering « competitively priced mobile broadband plans and NBN plans on the Vodafone fixed-line NBN network ».
Under the NBN agreement, Vodafone will provide its network and customer support services to Kogan customers, in addition to « marketing incentives for the launch of the Kogan fixed-line services ».
Looking forward, Kogan.com said it will focus on expanding its private label range, and will « ramp up » its insurance offering, which launched in the first few months of the new financial year in partnership with Holland Insurance.
The agreement with Holland, which is for an initial three years, allows Kogan Insurance to offer home, contents, landlord, car, and travel insurance and reap the rewards on a commission basis from the sale of products.
Similar to Kogan Mobile and Kogan NBN, Kogan will provide branding, marketing, and customer acquisition for its insurance play.
As of June 30,2017, the company said Kogan.com boasted a 955,000-strong customer base.
« The Kogan brand is renowned for price leadership through digital efficiency, » the company told shareholders on Friday. « Our vision is to harness the power of technology and personalisation to change the way our customers shop online. »
« We use technology innovation to stay ahead of our customers’ expectations and ahead of the curve. »
Such technology includes data analytics and systems, the company said, spending AU$2.8 million on website development during the period, while software expenses cost the company AU$8 million for the year.
Kogan.com acquired Dick Smith’s online retail business in March 2016, launching Dick Smith online following the electronic retailer entering into voluntary administration a few months prior.
For the six months ended December 31,2016, Kogan.com reported pro forma EBITDA of AU$7.3 million, on revenue of AU$143.9 million.
