Connxion expects swing to $1.8m FY11 profit

Data and transaction services company Connxion Ventures (ASX:CXN) has forecast a swing to an FY11 profit of $1.8 million.

In a presentation to investors the company, which reported a loss of $4.8 million in FY10, said FY11 will be the the first full year of contribution from several recent acquisitions.

As a result of the contributions and planned organic growth, Connxion is also expecting a 239 per cent increase in ebitda to $4.3 million. In FY10, ebitda slumped 141 per cent to a $4.8 million loss.

Connxion had previously revealed it is expecting revenue of $38 million for the year, and maintained this target in its latest guidance.

The company's revenue grew 502 per cent year-on-year in Q1, and Connxion said it was on track to meet its targets for the second quarter.

The company added that a top priority for FY11 will be the establishment of a billing solution joint venture in China with partner GDS.

Connxion provides online, data, rewards and payments solutions to corporate clients. Operations include data processing and customer intelligence services.

Copyright © 2010 IDG Communications, Inc.

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