iiNet posts first half revenue of $365 million

Revenue up 11 per cent to $365 million

iiNet Limited has posted its half year earnings for the six months ended 31 December 2011, with revenue up 11 per cent to $365 million.

In a statement to the ASX, Australia’s number three internet service provider (ISP) attributed its revenue growth to a strong business strategy, in addition to its recent acquisitions of Internode for $105 million and TransACT for $60 million.

“The last six months have been a period of considerable expansion, with iiNet continuing to grow scale and cementing its position as the clear number two in DSL broadband,” said iiNet chief executive, Michael Malone, in a statement.

“These acquisitions further build out iiNet’s national footprint, providing market leading presences in South Australia, ACT, and regional Victoria.”

The acquisition of both Internode and TransACT has garnered the ISP 16 per cent of the broadband market share, according to Malone, with 860,000 individual subscribers across 1.7 million services.

The ISP is also now prepared for the National Broadband Network (NBN), following its signing of NBN Co’s Wholesale Broadband Agreement last month.

“We have the scale, network capabilities, hardware capabilities, attractive pricing, and a brand centered on service and product delivery, that will allow us to thrive in an NBN world,” Malone said.

Reported EBITDA (earnings before interest, taxes, appreciation and amortisation) climbed 36 per cent to $56.4 million in the half, while net profits after tax grew 17 per cent to $14.4 million.

Interim dividend was up 20 per cent to six cents per share full flanked.

Follow Diana Nguyen on Twitter: @diananguyen9

Follow Computerworld Australia on Twitter: @ComputerworldAU

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