Amcom results boosted by iiNet performance

Acquisition of IP Systems expected to drive growth next year for fibre network provider

ASX-listed fibre network provider, Amcom Telecommunications (ASX:AMM) is reporting stellar results for the full financial year.

Net profit after tax for the 12 months to 30 June hit $17.3 million, up 43 per cent year on year, while revenues grew by 18 per cent.

The company has also increased its dividend by one cent per share to 1.4 cents, an increase of 75 per cent over the previous period.

In a statement to the ASX, Amcom CEO, Clive Stein, said the result reflects the company’s focus on high growth markets, “where data has become an essential service for business today”.

“We are continuing to see very strong demand for our products from the corporate, government and wholesale sectors as we move into the new financial year,” he said.

The company expects its full year profit for the next financial year to grow by 20 per cent, boosted by investments in iiNet and the acquisition of IP Systems.

In April, Amcom shareholders voted in favour of the telco's plan to acquire internet protocol communications provider, IP Systems in a deal worth $6.5 million.

Amcom received dividends from iiNet of $2.7 million for the year. It owns a 22.4 per cent interest in the ISP and holds one seat on the board.

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