Amcom posts profit surge

Fibre operator Amcom Telecommunications has announced a bumper net profit surge of 43 per cent to $17.3 million over the last financial year.

(Piggy savings image by Alan Cleaver, CC2.0)

The company flagged a revenue increase of 18 per cent to $63 million and earnings before interest, taxes, depreciation and amortisation (EBITDA) of 22 per cent to $22.4 million, on the back of strong demand for its services in corporate and government sectors.

Chief executive officer Clive Stein said it benefited from increased demand for telecommunications services from business and consumer markets including through its 22 per cent $36 million stake in internet service provider iiNet.

"We are continuing to see very strong demand for our products from the corporate, government and wholesale sectors," Stein said.

"With the company's strong balance sheet and track record of recurring earnings, Amcom is well placed to continue on its growth trajectory."

Amcom bagged a five-year $20 million deal with the Northern Territory Government in February this year to extend its fibre link between Darwin and Alice Springs and provide data services to schools.

Stein said the company's acquisition of IP Systems earlier this year further extended the growth opportunities for the business and cited notable profits in the sale of its 20 per cent stake in hosting provider Perth iX.

Respective revenue and EBITDA from Amcom segments included $12.2 million and $2.6 million from consumer business; $44.7 million and $21.8 million from fibre services; and $5.3 million revenue and $1.6 million from business services, which alone was down 18 per cent in EBITDA.