iiNet reports ‘record result’ for latest financial year

21 Aug 2013

Alternative Australian broadband provider iiNet has announced what it called ‘another record result’ with the company having seen earnings grow faster than revenue as margins improved significantly in the year ended 30 June 2013. Such a financial performance, the company noted, had been ‘delivered from the successful integrations of acquired businesses Internode and TransACT, increased products per customer, growing business customer revenues and targeted cost savings’.

In the year under review iiNet recorded total turnover of AUD941 million (USD966 million), with revenues from business services increasing by 53% against the previous year to AUD183 million. Operating costs were down by 4% in the second half of FY13, with earnings before interest, tax, depreciation and amortisation (EBITDA) rising by 29% for the full-year period to AUD187 million. Net profit after tax, meanwhile, increased by 64% year-on-year to AUD60.9 million.

With the integration of TransACT and Internode now said to be substantially complete, at 30 June iiNet had 840,000 broadband customers, of which the majority – 549,000 – were on-net, with a further 271,000 accessing services off-net. Fibre broadband subscribers, meanwhile, accounted for 20,000 of the total, up from 11,000 at the end of last year and 5,000 at end-June 2012. Fixed voice accesses stood at 423,000 at end-June 2013, down from 431,000 a year earlier, though voice-over-IP (VoIP) customers increased from 216,000 to 224,000. Uptake of the company’s mobile virtual network operator (MVNO) tariffs has also continued apace, with iiNet recording 126,000 mobile accesses at the end of the financial year, up from 93,000 at mid-2012.

Commenting on the performance over the year, iiNet CEO Michael Malone said that the company had cemented its position as the ‘new number 2‘ broadband DSL provider in Australia, noting: ‘While revenues have increased, margins have grown more as acquisition synergies have been delivered, cost-out initiatives have been implemented, and products per customer have increased to 2.23 … iiNet’s business division performed strongly with revenues growing 53% to AUD183 million. This segment now makes up 19% of group revenues, and we are successfully capturing the latent market potential in a segment that has historically been underserviced by our competitors.’

Australia, iiNet (incl. Internode)