Figure 1:

Source: Firehawk

Key developments

Enterprise ICT stocks in Australia and New Zealand showed mixed performance over the last year. Overall, economic growth is expected to be sluggish relative to previous years, creating uncertain performance for enterprise ICT equities. Some of these companies are growing through acquisition rather than organically, and are exposed to any economic downturn.

Comms Group

Comms Group’s stock dropped 13% during March, with the company releasing unfavourable 1H25 results on 27th February. The results entailed only modest revenue growth of 0.3% to $27m on the prior corresponding half, and a sharp reduction in EBITDA of 19% to $2.4m on the prior corresponding half. The fall profitability was explained as being “primarily driven by further investment in additional staff for the Global business to support future growth that has given rise to an increase in employee costs over the last six months.”

Spirit Technology

Spirit Technology’s stock fell 17.5% in March. On 25th February the company released its 1H25 results, these results included revenue growth of 15% to $50.3m from $43.7m in 1H24, while EBITDA grew to $3.9m from $0.2m in 1H24. However, compared to FY23 the business is down from when the company delivered $57.4m of revenue in 1H23 reflecting a decline over two years. Additionally, Spirit Technology’s Managed Services division saw a drop in revenue to $16.9m in 1H25 from $14.9m in 1H24. The company commented that it is focusing on ‘stabilising and restructuring this segment in an effort to return it to positive earnings momentum’.

Data#3

Data#3’s stock dropped around 5% during March, reflecting the broader technology market sell off occurring during this time frame. During late February, the company released favourable 1H25 results which included gross sales up 7.4% on the prior corresponding period to $1.4b and EBIT up 4.6% on the prior corresponding period to $26m. The company also raised its dividends per share by 4% during the period. Data#3’s pointed to certain operational highlights in the release, including that ‘cloud software infused with AI is now ubiquitous in its customers’ solutions’, as well as cybersecurity being its ‘fastest growing solution’.

Figure 2: ANZ enterprise ICT valuation multiples March 2025 

Source: Firehawk

About Venture Insights

Venture Insights is an independent company providing research services to companies across the media, telco and tech sectors in Australia, New Zealand, and Europe.