iiNet reports higher revenues as it continues to add broadband customers

19 Feb 2015

Alternative Australian broadband provider iiNet has published its financial results for the six months ended 31 December 2014, saying that record revenues and underlying net profit after tax had been underpinned by ‘strong broadband customer additions’.

In the first half of its 2015 fiscal year iiNet generated a total turnover of AUD547 million (USD487 million), up 11% year-on-year, with the company noting that improved mobile revenue growth had been driven by the launch of the new iPhone in November 2014, while continued growth in business revenues – which rose 5% y-o-y to AUD106 million – was attributed to a focus on the East Coast opportunities. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) stood at AUD97 million H1 2015, up from AUD95 million in the corresponding period of the previous year, with underlying net profit after tax rising to AUD32 million, from AUD31.3 million. Net operating cashflow was, however, down at AUD58 million, with iiNet saying it had been impacted by increased inventory for new mobile products launched late in the closing months of 2014, as well as its acquisition of New South Wales-based technology company Tech2 Group.

In operational terms, at the end of December 2014 iiNet’s broadband subscriber base totalled 975,000, up from 926,000 a year earlier; of that figure, 623,000 were on-net subscribers, up from 608,000 at end-2013, while off-net accesses fell to 267,000 from 270,000. Customers connected over the National Broadband Network (NBN) and other fibre infrastructure meanwhile accounted for the remaining 85,000, representing a y-o-y increase of more than 77% from the 48,000 such accesses reported a year earlier. Fixed line voice, voice-over-internet protocol (VoIP) and mobile voice subscriber numbers were all also up against the end of December 2013, standing at 472,000, 254,000 and 167,000, respectively at the end of the latest reporting period.

Commenting on the company’s performance, iiNet chief executive David Buckingham said: ‘The first six months of the 2015 financial year have seen the business achieve over 25,000 new broadband customers. When viewed over the last 12 months, iiNet has generated close to 50,000 broadband net additions, clear evidence of the success of the company’s strategy that is underpinned by delivering innovative products and excellent customer service … [The] growth in revenue has allowed the company to expand its network and invest in further enhanced customer service capabilities.’

Australia, iiNet (incl. Internode)