Growth in its hosting business has helped Macquarie Telecom record a net profit after tax for continuing operations of $4.8 million for the six months ended 31 December 2009, up 67.5 per cent year on year.
EBITDA for the period for continuing operations was $13.7 million, up 18.8 per cent year on year.
In an ASX statement the telco said it had continued to transition toward hosting as a higher margin service during the half, with record sales orders. Hosting profit for the half rose 37.4 per cent to $6.2 million.
The company’s Telco business – data, voice and mobile – suffered declines in revenue as further price competition and fixed to mobile substitution occurred, the company said.
Voice revenues were down to $54.6 million for the half from $61.1 million year on year.
Data revenues also declined to $30.2 million in the half from $31.5 million year on year, as did mobile revenues, which declined to $14.0 million in the half from $14.7 million year on year.
Telco profits increased more modestly up 3.3 year on year to $10.6 million.
Despite the declines, the company said it would retain its telco business as a core offering while hosting would act as its growth platform for the company.
Macquarie is forecasting a full year EBITDA from continuing operations of between $26 and $28 million.