Strong half year results for iiNet

21/02/2011 - 13:57

Bookmark

Save articles for future reference.

Perth-based internet service provider iiNet says it is on track to reach its full year guidance after recording a one per cent increase in first half profit.

Perth-based internet service provider iiNet says it is on track to reach its full year guidance after recording a one per cent increase in first half profit.

The company said net profit for the six months to December 31 was $12.3 million, compared to $12.1 million in the previous corresponding period.

But iiNet said the first half this year was a stronger performance, with a $17.2 million underlying net profit after tax for the half year to December 31, up from $14.8 million the previous year.

Revenue was up 45 per cent to $329.7 million, from 228.1 million in the first half of the 2010 financial year.

Australia's second-largest internet provider, iiNet grew its subscriber base to more than 1.3 million over the half year.

iiNet chief executive Michael Malone said the internet provider was on track to reach its full year EBITDA guidance of $106 million.

iiNet will pay an increased dividend of 5 cents per share, fully franked, up from 3 cents per share in the first half of financial year 2010.

Mr Malone said the past six months had been extremely busy for iiNet, which has recently launched a suite of new products.

"We launched fetchtv and mobile voice, and our new BoB Lite product was developed and launched by iiNet labs," Mr Malone said in a statement.

"In addition, we continued to lead the market with our customer plans by introducing the Terabyte plan and upgrading all on-net and off-net plans."

Also, Mr Malone said iiNet was very well placed to adapt to the development of the Federal Government's National Broadband Network.

"We now have greater clarity around the national broadband netweork, and the rollout is now commencing," he said.

"The NBN will increase the market opportunities for iiNet, providing us with nationwide customer access, the potential for lower churn due to relocations and a larger serviceable market.

"iiNet is NBN ready and ideally positioned for the change given its track recod for innovation, customer migration capabilities and comprehensive content and product offering."

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options