Amcom Telecommunications’ (ASX:AMM) $6.5 million acquisition of IP Systems has been attributed for the company’s reported revenue jump of 43 per cent in the half year to 31 December 2010, to $41 million.
In an ASX statement, the company attributed the acquisition, which was completed in May 2010 and the company’s first foray into Cloud based services, in addition to the company’s focus on the high growth sector of the telco market as the key drivers behind the increase.
The telco posted increased net profits after tax of 30 per cent to $9.9 million inclusive of the equity accounted earnings of iiNet for the six months ended 31 December 2010. iiNet (ASX:IIN) contributed equity accounted earnings of $2.9 million, up from the reported earnings of $2.8 million for the previous 12 month period.
Net profits after tax from 100 per cent owned operations also grew 46 per cent, excluding equity accounted earnings of iiNet, to $7 million for the period.
Earnings before interest, tax, depreciation and amortisation (EBITDA) also increased 33 per cent to $13.8 million for the half year.
Amcom chief executive, Clive Stein, said the results reflect the strength of the business model and the company’s position within the market.
“Despite a competitive telecommunications market, Amcom’s track record of industry performance, strong earnings growth and attractive shareholder returns continue,” Stein said in a statement.
The company also attributed the renewal of its five year, $20 million deal with the Northern Territory Government for existing Darwin and Alice Springs fibre networks to provide data carriage services to the Territory’s agencies and schools.
The company also attributed its recently announced partnership with BlueFire Corporation to its current position within the Cloud services market, and noted plans to launch its own Cloud IT service in the fourth quarter of this financial year, predicting it will contribute to Amcom revenue and earning from FY12 and onwards.
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