iiNet ups profit forecast, buys Perth ISP

Perth-based internet company iiNet has revealed that it expects to post a 9 per cent increase in first half earnings following favourable stamp duty rulings on a number of acquisitions.

iiNet also revealed it had entered in to an agreement to acquire Perth ISP Up N Away, which it said had about 1,800 broadband customers and 900 dial-up customers.

iiNet said it had made a $1.7 million stamp duty provision for its acquisitions of OzEmail, Virtual Communities, Froggy and ihug acquisitions.

However, it said it no longer required the provision after receiving notification from a number of state revenue departments relating to its submissions on stamp duty.

It said it would also get a $300,000 refund on stamp duty.

"These decisions will result in a once off addition of $2 million to the half year guidance and will also have a once off $2 million positive benefit to the company's reported net profit after tax," iiNet said in a statement to the Australian Securities Exchange today.

iiNet had forecasted a earnings before income, tax, depreciation and amortisation of $22.4 million for the six months to December 31.

iiNet said its acquisition of Up N Away was expected to be completed this month.

iiNet shares closed 6 cents higher at $2.23.