iiNet reports increased revenue in 2011 on the back of acquisitions

15 Aug 2011

Australian alternative broadband provider iiNet has announced that in the twelve months ended 30 June 2011 revenues rose by 48% year-on-year to AUD699 million (USD692 million), in part as a result of the acquisition of Melbourne-based internet service provider (ISP) Netspace in March 2010 and the purchase of the consumer operations of AAPT, the Australian subsidiary of Telecom New Zealand, the deal for which was finalised in September 2010. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) in the year to end-June 2011 meanwhile stood at AUD105 million, up from AUD81 million a year earlier, with iiNet attributing the increase to margin improvements in its core business as well as ‘synergies delivered from the acquisition of Netspace.’ Underlying net profit after tax for FY2011 was AUD39 million, representing an 11.4% y-o-y increase.

In operational terms, at the end of June 2011 iiNet reported that its broadband subscriber base had increased to 641,500, up almost 19% against the same date in 2010, of which 381,300 were on-net customers, up from 298,300. Traditional fixed voice customer numbers at the end of the twelve-month reporting period were 370,300, while the operator also counted 184,900 internet telephony subscribers.

Commenting on the results, iiNet CEO Michael Malone noted: ‘iiNet continued doing what we do best, delivering on our focused strategy and growing the business across all key metrics. 2011 was a landmark year in which we realised our ambitious goal of becoming the leading challenger in the Australian telecommunications market … Even with increased competition in the sector, iiNet was able to lower churn, maintain ARPU, retain profitable customers and grow its customer base.’

Australia, iiNet (incl. Internode)