iiNet reports 'best year ever'

Summary:Australia's third-largest ISP iiNet has reported an 11 per cent rise in full-year profits.

Internet service provider (ISP) iiNet said it has delivered its best financial result ever, with an 11 per cent rise in full-year profit.

Net profit for the year to 30 June was AU$37.1 million, up from the AU$33.3 million in the previous year.

Revenue from ordinary activities rose 19 per cent, to AU$831 million from AU$699 million.

Chief executive Michael Malone said that the ISP's "best ever financial result" was due to its acquisitions of competing broadband providers TransACT and Internode, which were both bought in late 2011.

"Integration benefits from the two acquisitions are flowing through to earnings, and we are successfully unlocking the inherent value of the acquired businesses," he said in a statement.

"We expect to fully integrate Internode's and TransACT's systems and networks over the next 12 to 24 months."

Malone said that the acquisition of Canberra-based TransACT boosted the company's corporate and governmental portfolios.

"Five years ago, we identified this segment as one we would focus on expanding.

"Since then, we have successfully extended our portfolio, and now provide services across all key market sectors, from home and small office through to small businesses, and, now, into corporate and government businesses."

The company also announced that it has appointed Internode co-founder and managing director Simon Hackett as a non-executive director to the board.

Michael Smith, iiNet's chairman, said that Hackett's experience will be a "valued addition".

"We have the opportunity to generate further benefits from the integration of our recently acquired businesses," he said in a statement.

He said that iiNet will focus on tripling the number of products sold per customer, and growing its business segment.

Hackett's position has not been replaced within Internode, and Internode's chief technology officer, John Lindsay, has now been promoted to the iiNet group CTO.

iiNet's 8-cent fully franked final dividend is 14 per cent higher than last year's. The company paid a 6-cent fully franked interim dividend.

Shares in the company were 12 cents higher, at AU$3.64 at 10.40am AEST.

Josh Taylor contributed to this article.

Topics: Telcos

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