Acquisitions boost iiNet’s first-half results

21 Feb 2011

Alternative Australian broadband operator iiNet has unveiled its financial results for the six months ended 31 December 2010, revealing that on the back of a number of notable acquisitions revenue had increased by almost 45% against the same period a year earlier. Having purchased both Victoria-based ISP Netspace in March 2010 and more recently the consumer operations of AAPT in July 2010, in the last six months of the year iiNet generated turnover of AUD329.7 million (USD334 million), up 44.5% against the AUD228.1 million it reported in H1 of its 2010 financial year. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) was AUD46.8 million, up 25% year-on-year, with iiNet attributing the increase to ‘sustained organic growth in revenue’ and ‘additional earnings from acquisitions, with further upside as synergies are extracted’. Net profit for the six-month period meanwhile was AUD17.2 million, up 16% against the same period a year earlier; the company noted that underlying results were presented after adjustments for the following non-recurring items: AAPT consumer division acquisition costs (AUD3.9 million); copyright case legal costs (AUD500 million); and Netspace integration costs (AUD900,000). Excluding the impact of such costs, iiNet’s net profit was AUD12.3 million, almost unchanged from the year-ago period.

In terms of subscribers iiNet reported that its total broadband subscriber base stood at almost 650,000, up from around 443,000 a year earlier, of which 366,200 were connected to the operator’s own network. The number of customers signing up to the operator’s internet telephony services also increased, up to 178,100 at end-December 2010 from 139,200 a year earlier.

Australia, iiNet (incl. Internode)