iiNet reports revenue increase as broadband customers numbers continue to climb

20 Feb 2014

Alternative Australian operator iiNet said it had ‘delivered another record result across all key metrics’ in the six months ended 31 December 2013. Revenues for the six-month period under review totalled AUD493 million (USD454 million), representing a 4% increase from the corresponding period in 2013. This increase, iiNet said, came on the back of a number of factors, including: four months of revenues from newly acquired subsidiary Adam Internet; continued broadband subscriber gains; organic growth in products per customer; and business customer revenue growth. Indeed, turnover from business services rose by 5% against H1 2012/13, and iiNet said such services now accounted for 20% of group revenue.

Earnings before interest, tax, depreciation and amortisation (EBITDA) in H1 2013/14 stood at AUD95 million, up 6% year-on-year, with growth driven in part by integration and efficiency savings. Underlying net profit after tax meanwhile increased by 19% to AUD31 million.

Operationally, at the end of December 2013 iiNet’s broadband subscriber base totalled 926,000, up from 837,000 a year earlier, the bulk of which (608,000) were on-net. The acquisition of Adam Internet notably saw iiNet’s customer base boosted by 70,000 in August 2013 alone. In the fixed voice arena the operator also reported customer gains, increasing its base from 428,000 at end-2012 to 431,000 a year later, while voice-over-IP (VoIP) accesses totalled 229,000 at the end of the reporting period, up from 214,000. iiNet’s mobile virtual network operator (MVNO) customer base meanwhile rose to 144,000 at 31 December 2013, up from 108,000 at end-2012.

Commenting on company’s performance iiNet’s Acting CEO David Buckingham was cited as saying: ‘Our focus has now turned to delivering organic growth, building upon the excellent customer service reputation we have created. We have achieved 16,000 broadband net additions and continued to grow the number of products per customer, a clear sign that this renewed focus is delivering results.’

Australia, iiNet (incl. Internode)