Western Australian internet service provider iiNet took an extra 47,500 broadband customers over the past year, and also added over 67,000 "naked DSL" subscribers.
iiNet's new BoB device
The ISP's naked DSL product has proven to be a star performer for the company, growing by 123 per cent for the year to 67,000, helping net the company revenue growth of 66 per cent on last financial year. The ASX-listed ISP today posted annual revenues of $418 million, up from $251 million last year.
iiNet managing director Michael Malone said in a statement this morning that the ISP was committed to being the top challenger in the telecommunications market. "This is most clearly demonstrated by the 123 per cent growth in naked DSL, more than doubling iiNet's total naked subscribers. 67,000 Australians have now ditched their phone line rental," said Malone.
iiNet now has 754,585 customers, it reported today, which had risen 10 per cent over the year. Earnings before income tax, revenue, depreciation and amortisation grew 42 per cent from $47.4 million to $67 million. Net profit after tax rose 44 per cent, up from $17.8 million to $25.6 million. Earnings per share increased 22 per cent from 13.9 cents to 16.9 cents.
It was the first reporting period in which iiNet had included a full year's earnings from its subsidiary Westnet, which it acquired in May 2008 for $81 million. At the time it brought iiNet's subscriber base closer to Australia's number two broadband provider, Optus, which had one million subscribers. Westnet added around 365,000 DSL subscribers.
Malone today reaffirmed the company's stance on the National Broadband Network.
"In terms of the key criteria we were looking for in a NBN — open access, structural separation, fixing backhaul 'black spots' and regulatory reform — the government has delivered a true vision," said Malone. "We see the government's open-access NBN as a fantastic new opportunity for iiNet."
iiNet's legal battle against several copyright owners represented by Roadshow and the Australian Federation Against Copyright Theft (AFACT) is set to continue this Wednesday at a directions hearing in the Federal Court, Sydney. iiNet intends to finalise its defence against claims that it breached copyright law.