Spirit Telecom grows 146% during COVID
Despite the tumultuous market and economic recession, ASX-listed Spirit Telecom (ASX: ST1) grew 146% in the four months January to April, compared to the prior corresponding period.
Despite the tumultuous market and economic recession, ASX-listed Spirit Telecom (ASX: ST1) grew 146% in the four months January to April, compared to the prior corresponding period.
Spirit is a leading provider of high-speed Internet and IT services to a diverse set of essential industries.
Sol Lukatsky, Spirit MD, attributes the impressive performance to a diverse client base and with changing needs.
“Education and health make up 65% and business 35%. Why is that important? You don’t want to be relying on one particular vertical during the COVID crisis,” Sol says.
“Businesses are moving away from on-premises services to the Cloud. They need high-speed links and services.”
“We are trying to become the Officeworks for the Internet,” says Sol. “Businesses don’t want to be dealing with multiple providers companies and Spirit intends to become a nimble, one-stop-shop for all Internet and IT needs.”
The company also offers bundles and 36-month contracts for client retainment and upselling.
“It’s very easy for a customer to leave if they’ve only got Internet. But if you provide holistic IT management, they’re not leaving.”
According to Sol, Spirit’s nimble service is a key selling point compared to major telecoms. To further illustrate Spirit’s appeal, Telstra quoted a business $12,000 and 4-month turnaround time for a single job. They then went to Spirit who completed the project in under a week for $800.
“The risk appetite for a challenger brand is absolutely there,” says Sol, citing businesses’ dissatisfaction with major telcos.
In the next 12 months, Spirit is aiming to be a $75-80m business.
“That’s just one good acquisition away,” says Sol.
Watch the video to learn more about Spirit Telecom from MD, Sol Lukatsky
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Recorded on 10 June 2020 at 12pm.
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