Amcom lifts dividend, increases guidance

23/02/2011 - 09:32

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Perth based Amcom Telecommunications has increased its full year earnings guidance after announcing a 46 per cent increase in half-year net profit after tax of $7 million from its 100 per cent owned operations.

Perth based Amcom Telecommunications has increased its full year earnings guidance after announcing a 46 per cent increase in half-year net profit after tax of $7 million from its 100 per cent owned operations.

Including the equity accounted earnings from Amcom's strategic investment in internet service provider iiNet, Amcom's profit lifted 30 per cent to $9.9 million.

Amcom has forecast its net profit after tax for financial year 2011 to grow at least 25 per cent on FY2010 to at least $21.6 million, including earnings from the iiNet investment.

Previous guidance was for an increase in FY2011 profit of at least 20 per cent.

Amcom said it would pay its shareholders a fully franked interim dividend of 0.6 cents per share, up from 0.4 cents in the prior half-year.

Revenue grew 43 per cent to $41 million on the back of Amcom's focus on the fast-growing data segment of the telecommunications market, and the acquisition of IP systems which marked the company's entry into cloud computing.

Amcom recently announced a partnership with BlueFire corporation and will launch its cloud IT service in the fourth quarter of this financial year.

Operating cashflow increased 42 per cent to $13.1 million over the period, and the return on shareholders' funds increased to 13.1 per cent from 12.1 per cent annualised.

Amcom chief executive Clive Stein said the results reflected the strength of the company's buiness model.

"Despite a competitive telecommunications market, Amcom's track record of industry outperformance, strong earnings growth and attractive shareholder returns continues," he said.

"The result was based on continued strong demand for Amcom's core fibre-based communications services and the company's embedded service culture."

Amcom shares were unchanged this morning, trading at 31 cents at 9:30AM (WST).

 

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