Acquisitions boost iiNet’s performance in FY2012

16 Aug 2012

Arguably reaping the benefits of what it called the acquisition of ‘two very attractive and strategically complementary businesses’, TransACT and Internode, alternative Australian broadband provider iiNet has reported what it has called its ‘best ever financial result’.

In the year ended 30 June 2012 iiNet generated revenue of AUD831 million (USD857 million), up 19% year-on-year, growth which the operator noted was in part driven by inclusion of five- and seven-month’s worth of revenues from TransACT and Internode respectively. Reported earnings before interest, tax, depreciation and amortisation (EBITDA) stood at AUD145 million, representing a 47% increase against the previous financial year, on the back of a number of factors, including: organic and inorganic growth contributions and regulatory benefits from the government’s interim determination on wholesale ADSL. Looking ahead, iiNet said it expects to see further operational cost reductions and ‘acquisition synergies’ in the FY2013. Reported net profit after tax for the twelve-month period was AUD37 million, up 11% y-o-y.

Across all of its product ranges, at end-June 2012 iiNet said that the total number of service accesses in operation stood at 1.628 million, up 26% against the same date a year earlier, with this increase in part attributed to an increased focus on bundling products together. The acquisition of TransACT and Internode meanwhile increased its market share in the broadband sector to 15%, and at end-June 2012 the operator reported a total of 839,000 high speed internet subscribers, up from 641,000 a year earlier. Notably, the percentage of the company’s ‘on-net’ customers has continued to increase, thanks in part to a bulk of CAPEX having been spent on both DSLAM capacity and customer and network expansion at TransACT; at end-June 2012 more than 65% of all broadband customers were on-net, up from 59% a year earlier. Fixed voice telephony accesses meanwhile totalled 431,000 at the end of the reporting period, up from 370,000 at the end of June 2011, while voice-over-internet protocol (VoIP) subscribers numbered 216,000, up 16.8% y-o-y.

Commenting on the company’s prospects, iiNet’s chief executive officer Michael Malone noted: ‘Our scale, combined with our culture of service and product leadership have provided the foundations for our growth. These attributes also place us in a unique position to continue growing in an evolving market for telecommunications services in Australia.’

Australia, iiNet (incl. Internode), Internode, TransACT