HWG - Hostworks Group - Aussie Stock Forums

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  1. #1

    Default HWG - Hostworks Group

    Below is the summary of a company from westpac that I have had on my watch list for a while primarily due to it's list of clients. I have recently bought in as the share price seems to be getting stronger. Views would be appreciated. Thanks.

    Hostworks Group Limited (HWG) is involved in the management of internet applications and websites. The company provides an end-to-end service including data centres, network, hardware, software and 24x7 comprehensive customer support.
    Hostworks provides customised solutions to meet managed Internet hosting needs, taking responsibility over a broad spectrum of tasks from data centre security and availability through to connectivity and applications, enabling customers to focus on their content.
    The company's capabilities include customers' database management and administration, standard applications such as Customer Relationship Management (CRM) and e-commerce, e-mail and messaging systems, applications servers and customers' proprietary applications.
    Clients of Hostworks include ninemsn, AAMI, Ticketek, Austereo, Microsoft, Cisco and one of the world's leading financial institutions.

  2. #2

    Default Re: HWG - Hostworks Group

    Quote Originally Posted by Profitseeker View Post
    Clients of Hostworks include ninemsn, AAMI, Ticketek, Austereo, Microsoft, Cisco and one of the world's leading financial institutions.
    Are you sure it hosts Microsoft and Cisco? I think they will just be partners, they wouldn't let there software / sites code out of their very secured server rooms.

    Without any research except a look at their site, they look to be a web hosting company with software management tools such as e-commerce, email marketing and content management software plus others.

    There are a fair few companies like this around which are not publicly listed.

    http://www.webcentral.com.au These are the biggest guys i know of, they host a large portion of Australia's corporate sites and also created OZEmail.

    Hope this helps abit.
    Last edited by surfingman; 20th-April-2007 at 11:08 AM.

  3. #3

    Default Re: HWG - Hostworks Group

    Hi surfingman. I got that summary directly off the westpac broking site. I'll do some more research and see how involved those guys actually are.

  4. #4

    Default Re: HWG - Hostworks Group

    See attached announcement re microsoft.
    Attached Files

  5. #5

    Default Re: HWG - Hostworks Group

    Thats what i thought, its a certification by Microsoft for using there network solutions go to http://www.webcentral.com.au and look down the bottom of the page they also have it and so do many other hosting companies, they pay Microsoft for this certification.

    some more details of this certification here:

  6. #6

    Default Re: HWG - Hostworks Group

    Don't get me wrong they host some big names and may have some great potential, but they also have some really big competitors worldwide.

  7. #7

    Default Re: HWG - Hostworks Group

    No. I appreciate your view surfingman. Thank you.

  8. #8

    Default Re: HWG - Hostworks Group

    Actually, Hostworks is in a very different space to Webcentral (now Melbourne IT). Webcentral is the market leader for commodity web hosting - that is, thousands of users who spend only a few hundred dollars each. Hostworks has a small number of very high value clients and a portion of them represents some of the largest most sophisticated web sites in the country, such as ninemsn (the Microsoft/PBL joint venture MSN in this part of the world), Wotif, SEEK, Realestate.com.au, News Digital Media, Ticketek, Ten Network, SBS TV and others. They also provide IT outsourced services for enterprise applications such as SAP, Peoplesoft, Oracle etc. They tend to compete with the major IT outsourcers such as IBM and the like as they operate at the top end of the market where applications are regarded as critical to customers businesses.

  9. #9

    Default Re: HWG - Hostworks Group

    Could be a potential take over target me thinks.

  10. #10

    Default Re: HWG - Hostworks Group

    Quote Originally Posted by tradeforfreedom View Post
    Actually, Hostworks is in a very different space to Webcentral (now Melbourne IT). Webcentral is the market leader for commodity web hosting - that is, thousands of users who spend only a few hundred dollars each. Hostworks has a small number of very high value clients and a portion of them represents some of the largest most sophisticated web sites in the country.
    I would argue that one, due to the fact 2 years ago a close friend of mine was working closely with Webcentral as a programmer he developed an email marketing software package in which they purchased, at this staged they hosted some of Australia's larger corporate sites.

  11. #11

    Default Re: HWG - Hostworks Group

    Interesting article

    February 14, 2007: Hostworks Group Limited – ASX Code HWG
    Hostworks Profit Up 356%
    Strategic Plan Returns Strong Profitability
    Asia-Pacific leader in critical enterprise application outsourcing Hostworks Group Limited has extended its record of consistently profitable growth by reporting its eighth successive half year of profit as sales revenue grew by 15% in the six months to December 2006.

    Hostworks recorded a Net Profit After Tax of $0.65m, a 356% increase as compared to the previous corresponding period. The company’s sales revenue topped $10m for the first time in a December half, growing to $10.67m, up from $9.28m in the 2006 first half, an increase of 15%.

    Financial highlights for the half year include:

    Sales revenue of $10.67m – up 15.0% on pcp
    EBIT of $0.76m – up 497% on pcp
    EBITDA of $2.30m – up 21.5% on pcp
    EBITDA margins improved from 20.4% to 21.6% on pcp
    NPAT of $0.65m – up 356% on pcp
    Capital Return and share buyback totalled $2.2m in the six months to December 31, 2006
    Contracted revenue in hand increased to $30.5m from $28.0m at December 31, 2005.
    At the Hostworks Annual General Meeting in October 2006, Hostworks noted that the 2006 result had been affected by investment in strategic initiatives and material costs associated with acquisition activities, including a bid for a large piece of business that was expected to deliver a 2007 NPAT at least equal to the 2005 financial year. The first half confirms that Hostworks is well positioned to meet that goal.

    Success of Plan

    Hostworks’ success this half was in line with the longer term strategic planning objectives of management. This plan has started to deliver results by leveraging earlier investments and maintaining a focus upon adding significant value to Hostworks customers by managing their critical applications and infrastructure while driving efficiencies. With conditions in this part of the market remaining positive, the company is on track to continue delivering improved results.

    New Sales Extend Hostworks Media Market Leadership while Existing Customers Sign New Contracts
    In the first half, Hostworks signed a number of significant new contracts that extend its leadership in the online media sector. These include a $2.5m deal with Network Ten to manage its new online presence in 2007 and an outsourcing agreement to manage high-demand online media and ecommerce sites for SBS. Other recent successes include Southern Cross View; a new real estate portal; Harris Scarfe; Carsales.com.au; managing a once-off national online media event with partner Optus and ACP New Zealand. Hostworks also won additional work from existing customers including SEEK, Codan and SA Water.

    Hostworks continues to realise new revenue opportunities from sales of ad-serving technology and associated services as the Australian online advertising market in 2006 exceeded $1 billion for the first time. The company used a one-off 2005 ad-serving software sale to realestate.com.au to secure a three-year agreement to monitor the online property specialist’s global web applications and infrastructure.

    Larger Accounts, Revenue Share and Outsourcing Successes
    Hostworks has succeeded in its strategy of winning larger accounts. Average revenue per customer is now $31,000 per month, up from $24,000 just two years ago.

    Hostworks is also engaging with customers in an innovative revenue share model that removes upfront costs in return for a share of revenue in selected high-growth projects and businesses. Hostworks has signed two new revenue share deals for products that will launch shortly.

    As well as ongoing success in winning selective outsourcing contracts such as Codan, realestate.com.au and SEEK, Hostworks is partnering with other organisations to bid for much larger outsourcing contracts. This strategic positioning of Hostworks’ critical application management capabilities within best-of-breed teams to pursue larger outsourcing contracts has significant potential within Australia.

    New Sales Highlight Hostworks’ Leadership in Online Media
    Hostworks is the Asia-Pacific leader in critical enterprise application outsourcing, delivering business systems with guaranteed availability. Customers include AAMI, Codan, Compass Group, Network Ten, SBS, Southern Cross View, News Digital Media, ninemsn, realestate.com.au, Carsales.com.au, SEEK, Sensis, Ticketek and Wotif.com. The company continues to win new business across a range of areas including critical enterprise application outsourcing such as SAP environments, Managed Services, Software as a Service and ad-serving solutions.

    New Customer - Network Ten
    Hostworks will provide a comprehensive Managed Service to support the significant new online presence for Network Ten's digital division as a key partner in TEN's bid to gain a greater share of the $1 billion Internet advertising market. TEN will launch at least 50 sites in 2007 based on both local programs such as Australian Idol, Big Brother and Thank God You're Here and overseas series. Hostworks' agreement with TEN will grow as the broadcaster positions itself as a major player against competitors in the Australian market.

    New Customer - SBS
    SBS has signed an agreement to outsource management of its high-demand online media sites to Hostworks in a bid to satisfy huge online spikes that can exceed 10 times normal load. Hostworks will progressively migrate key online assets for SBS, starting with its news sites, from existing infrastructure on to platforms managed by Hostworks. This is the first time SBS has outsourced its online infrastructure.

    New customer - Southern Cross View
    Hostworks established a new relationship with Southern Cross View, the producer of Australia’s popular Big Brother reality TV show and other major TV shows and radio services. Southern Cross View is the new aggregated online business for Southern Cross.

    New customer - Harris Scarfe
    Australian department store group Harris Scarfe has signed a three-year agreement with Hostworks to guarantee the availability of its core business systems.

    Extra Success with Existing Customers
    During 2006, Hostworks has also strengthened its relationship with a number of incumbent customers which have signed new contracts and, in many cases, increased their expenditure on Hostworks services:

    Codan initially engaged Hostworks to provide system infrastructure for its mySAP Enterprise Resource Planning (ERP) system. Codan has extended this engagement by outsourcing more of its technology infrastructure to Hostworks to ensure system availability for its international operations.

    Further SAP Managed Services Success
    An existing customer has engaged Hostworks to provide a managed SAP Enterprise Resource Planning (ERP) software environment for its national operations. This substantially leverages Hostworks’ investment in SAP skills and capabilities, positioning Hostworks strongly to capture further business in this sector.

    SA Water
    Australian water utility company SA Water has signed a new contract with Hostworks that ensures the secure location and availability of core business systems. Serving nearly 1.4 million people, SA Water owns and manages South Australia’s water supply and wastewater treatment systems.

    Full Year Outlook – $22m Revenues and EBIT over $2m
    Hostworks Managing Director Marty Gauvin said 2006 had contributed to a stronger and more diversified company. “The increased use of broadband by businesses and households continues to drive demand for our services,” he said. “A significant achievement in the first half of 2006-07 is that we have replaced revenues generated by one-off sales in 2005-06 with services-based revenue that will recur in future years. As a result, we have sustained our contracted operating revenue at above $30m, a 56% increase in the past two years.

    “The stability and strength of Hostworks’ executive management team, leading our expanded consulting and account management team, has contributed to the company’s accelerated growth and rapidly expanding sales pipeline, which is having a positive impact on profitability in 2007.”

    With the significant amount of contracted revenue, a healthy sales pipeline and continued focus on operational efficiency and cost control, the Board is confident that full-year revenue will exceed $22m and that the EBIT margin achieved in the first half will be maintained or improved. EBIT for the full year is expected to exceed $2.0m matched with increasing cash reserves.

    The Company has not declared a dividend for the half year but does expect to make a distribution following the full year result at least equal to last year’s distribution of 1 cent per share through a combination of dividend and capital return.

    Hostworks is the region’s leading critical application managed service provider and is responsible for managing the availability, performance and running costs of its customers’ critical business applications. Hostworks does this by providing specialist services designed to ensure IT operations excellence. Hostworks delivers its services on tightly engineered, secure infrastructure which provides optimal performance and protects its customers’ applications and data from security threats.

    Hostworks manages critical applications for organisations that depend on quality of service and high availability. Hostworks clients include SEEK, Wotif, News, Sensis, ninemsn, Ticketek, Codan, AAMI, Compass Group and many others. A public company listed on the Australian Stock Exchange (ASX – HWG), Hostworks is an expanding organisation that has experienced strong annual growth.

  12. #12

    Default Re: HWG - Hostworks Group

    And another..

    Online alliance corners market
    Simon Canning
    March 22, 2007

    AUSTRALIA'S $1 billion online advertising market is about to be dominated by a single player following an alliance between the global company DoubleClick and local operator Hostworks.
    Last month, Hostworks claimed to have more than 52per cent of the national market, serving online advertising for clients as diverse as News Digital Media, Ninemsn, Seek and Sensis.
    That share is now expected to increase to more than 80 per cent for the combined group.

    Hostworks and DoubleClick help designate where advertising on the internet flows, for website owners and advertisers.

    The move by DoubleClick to sign Hostworks gives Hostworks access to software that allows more seamless delivery of ads, while DoubleClick will benefit from Hostworks' local dominance; it has dozens of national advertisers on its books.

    "The two leading technology service providers in the marketplace have got together to really dominate the space," Hostworks' sales and marketing director Klaus Bartosch said.

    "We are the company that presently manages most of the top websites that are outsourced. Many of those customers are looking for online ads to fuel the growth in development of their businesses. By aligning ourselves with the global market leader in this space I think we are jointly going to be a fairly significant partnership."

    The partnership will present billions of online ads to consumers each month.

    "You are talking about volumes of ads of 3.5 billion or more," Mr Bartosch said. "What is interesting is the pace at which the market is growing. Market analysts suggest it is growing at 65 per cent. What we are seeing is 100 per cent or more. That kind of growth has been going on for the past three years and we expect that is going to continue for at least the next three years."

    Mr Bartosch said growth driven by existing companies taking their advertising strategies online would be augmented by business from new companies looking to the internet. "For them, ad serving is a key part of their underlying strategy," he said.

    Consumers should find the partnership would allow ads to be delivered more quickly, and therefore web pages should load faster, Mr Bartosch said.

    "It will also be a more relevant ad display," he added. "What the consumer is going to get is a page display that is faster, and so the convenience and pleasure of surfing the web is increased. You may not be aware of it, but if ad serving is not effectively delivered, page display is slowed down."

    Mr Bartosch said ad delivery became critical during events that saw high internet traffic.

    For example, he said, when Steve Irwin died last year so many Australians rushed to the internet for updates that many advertising messages failed to get through.

    "You just have to look at the last few months with even major companies struggling to deliver ads when the demand on their websites is very high," he added.

    Last year, internet advertising in Australia topped the $1billion mark for the first time, with Hostworks' customers accounting for $525 million of that.

    The deal was an important one for DoubleClick, as Hostworks had been working with its biggest rival in Australia, Accipiter.

    "If you look at it in terms of ad serving, between us now we own something in the order of 80 to 90 per cent of the market. But, importantly, it is a market that is growing rapidly and there are a lot of new customers seeking these services," Mr Bartosch said.

    DoubleClick Asia-Pacific managing director Kaylie Smith said the deal would allow the company to increase the number of advertisers using its advertising software packages.

  13. #13

    Default Re: HWG - Hostworks Group

    Good Close today. It looks like it has broken out. It will be intresting to see what it does on open tomorrow.

  14. #14

    Default Re: HWG - Hostworks Group

    Nice announcement out yesterday in regards to higher than expected earnings.

    Forecast FY 2007 EBIT up by at least 25% on February 2007 Guidance`
    ASX Announcement
    Thursday, 24 May 2007
    Hostworks Group Limited (Hostworks) today announced that it expects FY 2007 EBIT to be at least $2.5 million. This compared to the previous guidance in February 2007 of EBIT in excess of $2.0 million.

    Hostworks also confirms that its Revenue for FY 2007 is expected to exceed $22 million and EBITDA is expected to be approximately $6 million. These expected results would represent record results for Hostworks.

    Hostworks results are based on continued strong growth in contracted annuity revenue form both new and existing customers and significant margin improvements driven by scale effects.

    Marty Gauvin, Hostworks Managing Director, said: “the company’s strong trading results mark continued excellent progress against its three year plan objectives to drive increased margins and strong revenue growth in its core business of critical application management for enterprise customers.

    “We are seeing continued strong demand from the enterprise and government sector for high quality robust solutions to support their increasingly strategic and critical on-line activities. We expect this growth and demand to continue, particularly in on-line marketing and advertising and in a range of new media initiatives where Hostworks has market leadership capabilities.”

    Further details regarding Hostworks performance for FY 2007 will be provided in August with the full year results announcement.

    These forecast results are based on internal un-audited management accounts to April 2007 and assume that current trading conditions are maintained to the end of the financial year and may be subject to change on completion of Hostworks final accounts for FY2007.

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