iiNet reports strong first half financials as acquisitions boost subscriber base

21 Feb 2012

Australian alternative broadband provider iiNet has revealed a 17% year-on-year increase in net profit for the six months ended 31 December 2011, on the back of revenues which climbed by 11% in the wake of two notable acquisitions. For the first half of the operator’s 2011-12 fiscal year it posted net profits of AUD14.4 million (USD15.5 million), up from AUD12.3 million in the same period a year earlier, while turnover for the six-month period was AUD365 million, compared to AUD330 million in H1 2010-11. Earnings before interest, tax, depreciation and amortisation (EBITDA) for the half stood at AUD56.4 million, representing a 36% increase against the corresponding period in FY2010-11.

Having tied up deals to acquire both Adelaide-based Internode, which operates nationally, and Canberra’s TransACT, iiNet noted that it had seen significant increases in its broadband subscriber base. At the end of December 2011, having added some 40,000 customers via the TransACT purchase and a further 190,000 from the Internode acquisition, it reported a total broadband base of around 860,000, a figure which it claims now means it accounts for around 16% of the country’s total high speed internet accesses. With regards to an earlier acquisition, meanwhile, Internode noted that its integration of AAPT’s consumer division – which it agreed to purchase in July 2010 – was more than 90% complete.

Commenting on the company’s acquisition strategy and its progress so far, iiNet CEO Michael Malone noted: ‘The recent acquisitions of TransACT and Internode have been key in building further scale, and taking iiNet’s broadband market share to around 16%. These acquisitions further build out iiNet’s national footprint, providing market leading presences in South Australia, ACT and regional Victoria … In addition to having leading residential broadband market share in the ACT, TransACT provided a unique opportunity for iiNet to acquire significant network infrastructure assets in a key market. Through this acquisition, iiNet also further penetrated the lucrative SME, corporate and government sectors, which is a key strategic focus for iiNet.’

Australia, iiNet (incl. Internode)