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iiNet’s net profit up 36 percent

iiNet has announced a net profit after tax 36 percent higher for the year ending 30 June, with iiNet’s reporting revenue growth of 13 percent to $473.8 million.

iiNetiiNet Chief Executive Officer Michael Malone said the company’s strong results were due to the “four pillars of service, brand, content and consolidation” that drives the company. iiNet has been an aggressive player in the Australian ISP space, merging with rivals Ozemail, Westnet in previous year, while acquiring Netspace within the last financial year. In July iiNet came to terms to buy AAPT’s consumer ADSL business for $60 million, elevating iiNet to second place behind Telstra in ADSL subscriber numbers in Australia.

“Over the past twelve months, iiNet has experienced strong sustained growth in its products and services. This has been a direct result of the continued delivery of our strategy, and the dedication and hard work of all the people within our organisation.” Mr Malone said.

iiNet’s ADSL subscriber numbers grew by 27 percent in the last financial year to 960,000, with the AAPT deal adding an additional 364,000 ADSL services to that footprint. iiNet’s underlying earnings before interest, tax, depreciation and amortisation (EBITDA) was 20 percent higher to $80.7 million for FY2010.

“One of our key targets has been to reach fifteen percent DSL market share prior to the full launch of the National Broadband Network. The acquisition of Netspace, and the proposed acquisition of AAPT’s consumer division will bring iiNet very close to achieving this goal.” Mr Malone said.

“It is important to highlight that we have not just focused on top line growth. The rate of growth in iiNet’s earnings has continued to surpass the rate of growth in revenues. We continued to deliver improved cost management and efficiency in our core activities and the full synergy target from the acquisition of Westnet.”

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David Olsen

David Olsen

An undercover economist and a not so undercover geek. Politics, business and psychology nerd and anti-bandwagon jumper. Can be found on Twitter: <a href="http://www.twitter.com/DDsD">David Olsen - DDsD</a>

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