Activeport Group (ASX: ATV) Cuts Costs as Q1 Revenue Rises

Activeport Group said a completed restructuring will deliver about A$2 million in annualised savings as revenue improves across its Software, Network and Services divisions.

The Perth-based technology company reported stronger first-quarter FY27 activity across all three businesses, supported by new software deployments, international network orders and growth in Services.

At the midpoint of the quarter, each division was tracking above its average revenue level for FY26.

Activeport also said underlying first-quarter cash consumption was running 34% below the FY26 quarterly average, excluding restructuring costs.

Cost Base Reset

The savings include A$1.85 million in annual payroll reductions following the appointment of Michael Glynn as chief operating officer in June.

Activeport said the restructuring is now complete, leaving the group with a leaner operating base as it seeks to improve cash generation.

The reduction is material because the company remains in a cash-consuming phase. Lower fixed costs reduce the revenue required to narrow operating cash burn and move toward breakeven.

Still, Activeport did not disclose first-quarter revenue figures or provide earnings guidance. Its comparison was also against average FY26 revenue rather than the prior corresponding quarter, limiting the ability to assess the pace of year-on-year growth.

Software Projects Move Into Production

Software revenue increased as projects initiated during FY26 were completed and moved into production.

Additional projects are scheduled to begin during the first and second quarters, which Activeport expects will support faster revenue growth through FY27.

A refreshed interface for the company’s core network and data-centre connectivity platform is due to launch in September.

Activeport is also targeting growth in India, where it said new digital infrastructure providers are creating demand for customer portal software among telecommunications and data-centre operators.

Global Edge Builds International Pipeline

Activeport launched its Global Edge network service internationally in July and said more than six international telecommunications companies have committed to the platform.

Circuit orders are also increasing month-on-month, although the company did not disclose customer identities, contract values or expected revenue contributions.

Global Edge allows international carriers to purchase network services terminating on Activeport’s Australian infrastructure. Singapore is scheduled to be added to the platform in September, with further country launches planned.

The company also intends to expand the service to include data-centre connectivity, managed firewalls, cloud connections and software-defined wide-area networking.

Those additions are designed to lift both revenue and gross margin, though Activeport has not provided financial targets.

AI Services Add Growth Option

The Services division is now fully integrated and contributing to group revenue growth.

Activeport is expanding its capabilities across neocloud infrastructure, networking and development operations, with a particular focus on demand from artificial-intelligence customers.

AI software projects are underway in Australia and Canada, with further international expansion planned. The company did not disclose customer names or project values.

Activeport is also applying graphics-processing-unit orchestration technology to AI workloads running across telecommunications networks and data centres, with the aim of improving computing efficiency and price-performance.

For investors, the FY27 story now rests on whether the combination of a lower cost base and stronger activity across Software, Network and Services can translate into sustained revenue growth and a meaningful reduction in cash burn. Subsequent quarterly disclosures will provide the first clear test of that progress.