Acquisitions boost iiNet’s finances in first half of 2012/13

22 Feb 2013

Alternative Australian broadband provider iiNet has announced what it termed ‘another record result’, with the telco posting a 122% year-on-year increase in net profit for the first six months of its 2012/13 fiscal year. In the half ended 31 December 2012, iiNet recorded a net income of AUD31.9 million (USD33.2 million), up from AUD14.4 million in the same period a year earlier, although the telco noted that the period under review did include an AUD5.7 million post-tax prior year rebate from the Internal Interconnect Cable (IIC) Charge determination made by the Australian Competition and Consumer Commission (ACCC) in December 2012. Nonetheless, iiNet pointed to ‘increased revenues and improved margins following the acquisitions of Internode and TransACT in 2012’ as some of the major factors in its improved profits. In the half iiNet generated a total turnover of AUD474 million, representing a 30% increase when compared with H1 2011/12, on the back of organic growth in products per customer and higher business customer revenue growth. Reported EBITDA meanwhile stood at AUD98 million in the first half of the telco’s current financial year, up 73% compared with the AUD56 million it recorded last year, thanks to factors including organic and inorganic revenue growth, the delivery of Internode network synergies and benefits of the TransACT network.

At the end of December 2012 iiNet reported a total 836,000 broadband subscribers, up from 669,000 a year earlier; of that total, almost two-thirds – 545,000 – were on-net accesses, while National Broadband Network (NBN)/fibre connections numbered 11,000, up from just 1,000 at end-December 2011. Traditional fixed line voice accesses continued to increase, rising to 428,000 at the end of the year, up from 404,000, while voice-over-IP (VoIP) subscribers were 14.4% higher at 214,000. Mobile voice and IPTV customer numbers meanwhile totalled 108,000 (up 35% y-o-y) and 24,000 (up 33.3% y-o-y).

Commenting on the company’s performance, Michael Malone said: ‘iiNet has consistently grown over the past few years, delivering on our focused strategy centered on service, brand, innovation and scale … We have strengthened our position as the clear number two broadband DSL provider following the acquisitions of TransACT and Internode. The successful integration of these acquisitions, and others before them, has driven substantial synergy benefits and improved margins as iiNet has leveraged its platform and improved service and product levels in the acquired businesses.’

Australia, iiNet (incl. Internode)