Dubber Corporation Limited Locks in Guaranteed AUD 1.4M+ Revenue, Slashes Costs by $5.25M, and Targets Cash-Flow Positivity by December 2025
Thursday, June 5, 2025
at
8:49 am
Dubber Corporation Limited confirms retention of a key contract with Virgin Media O2, securing minimum FY26 revenues of AUD 1.4–1.5m. The firm is executing a cost-cutting program, including reducing expenses by AUD 4m and divesting surplus real estate, aiming to achieve positive cash flow by December 2025.
DUBBER CORPORATION LIMITED has provided an update on its customer contract and strategic cost reduction measures in response to evolving market conditions. The company confirmed it will retain its Wholesale SIP contract with Virgin Media O2, ensuring continued revenue of approximately AUD 550,000 to AUD 700,000 per annum, while also securing a new side letter that guarantees a minimum of AUD 1.4–1.5 million in revenue for its Network Mobile Recording and Wholesale SIP operations during FY26. Additionally, Virgin Media O2 has announced that no customer migration to a new recording provider will occur before 1 July 2025, offering further operational stability.
In a drive to mitigate the impact of impending revenue reductions, DUBBER CORPORATION LIMITED is taking decisive actions to improve its bottom line. The company plans to reduce annual costs by AUD 4 million by the end of the first half of FY26, alongside efforts to exit an unfitted London real-estate lease, which should contribute an extra AUD 1.25 million in annual savings. These measures, together with sustained sales activity and a strong global pipeline of opportunities, are aimed at returning the firm to run-rate cash-flow positive status by December 2025.
From a financial perspective, the company reported a robust working capital position of AUD 16.5 million as of 31 March 2025 and anticipates maintaining at least AUD 12 million in working capital once it achieves positive cash flow. The board’s current stance indicates no need for additional capital raising to support working capital requirements, further underscoring financial stability during this transition period.
For traders evaluating the news, the sentiment could be seen as bullish due to the secured revenue streams, proactive cost reduction strategy, and a healthy sales pipeline positioning the company for improved cash flow. Conversely, there may be concerns from a bearish standpoint considering the inherent variability of revenues linked to usage levels and the execution risks involved in rapidly implementing significant cost cuts and transitioning service arrangements. Overall, the announcement provides a layered perspective on near-term challenges and strategic initiatives designed to fortify the company’s financial resilience.