iiNet revenues and profits up

ISP posts strong results and claims greater market share

iiNet (ASX:IIN) has posted a revenue gain of 11.3 per cent for the half year to 31 December, 2009 over the same period in 2008.

The internet service provider (ISP) also recorded after tax profit of $12.13 million, up 6.3 per cent over the previous corresponding period.

Notably, the ISP experienced a rise of 30 per cent in Naked DSL customers to 86,905 with more than 300,000 people utilising its digital subscriber line access multiplexers (DSLAMs).

Total customer numbers rose 5 per cent over six months to 31 December to 799,817.

The ISP reported it has sold more than 16,000 of its all-in-one 'Bob' offering since the launch in August last year. Sales of the device represent 85 per cent of all its modem sales and 73 per cent of Bob customers choose Naked DSL.

iiNet was embroiled in a high-profile copyright infringement case with the Australian Federation Against Copyright Theft (AFACT) throughout much of 2009 and particularly late in the year.

iiNet won the case in the Federal Court of Australia in early February and was awarded costs of $4 million. The company wrote down the legal costs of the case in its financial statements as $3.7 million.

AFACT has since announced it will seek to recoup some of the $4 million in costs awarded to the ISP.

In its ASX investor report, iiNet also pointed to growth in its broadband market share, claiming a rise of 0.5 per cent in the first half of this financial year to 10.6 per cent.

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