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iiNet reports 64 percent jump in profits

Australia's third-largest internet service provider, iiNet, has reported a jump in annual profits of 64 percent, up to AU$60.9 million.
Written by Josh Taylor, Contributor on

iiNet has recorded a 64 percent jump in annual profits on the back of growth in the number of on-net broadband customers, and National Broadband Network (NBN) and fibre customers.

The internet service provider (ISP) today announced a net profit after tax of AU$60.9 million for the full year ending June 30, 2013, up 64 percent, or AU$23.8 million, from AU$37.1 million last year.

The total number of services sold to customers from iiNet now totals 1.64 million, with a total of 549,000 on-net broadband customers, 271,000 off-net customers, and 20,000 NBN and fibre customers. The company reported strong growth in the number of fixed-line subscribers also taking up mobile services, with 126,000 up from 93,000 last year.

On-net additions only amounted to 4,000 for the total year, and iiNet lost 18,000 off-net customers in the 12 months, but this was offset by growth in the NBN and fibre customer base from 5,000 last year to 20,000 this year.

Of those 20,000, 60 percent of the customers are on the NBN fibre, while 35 percent are on the satellite service, and 5 percent are on the wireless service.

iiNet said that 50 percent of its customers are buying plans on the NBN with speeds higher than the 12Mbps service.

On the looming election, iiNet CEO Michael Malone said that either NBN policy would represent an opportunity to iiNet customers.

"The NBN presents an exciting opportunity for iiNet and our customer regardless of the election outcome," he said in a statement.

"We have embraced the NBN and just passed the milestone of 20,000 customers on the NBN. While still small in the context of iiNet's total subscriber base, we expect this to grow strongly as the rollout speeds up."

The total number of customers excludes the 70,000 Adam Internet customers, which the company acquired in August.

The average number of products per customer now sits at 2.23, according to iiNet.

The integration of the TransACT and Internode businesses are close to completion, with only the billing systems left to migrate over. TransACT's billing system is set to be migrated in the first quarter of this financial year, with Internode's billing migration to occur between the second and third quarters of the financial year.

Newly acquired ISP Adam Internet will have its backhaul and bandwidth consolidated into iiNet through the second and third quarters of this financial year, with billing migration tipped for the last quarter of the financial year.

iiNet's business division continued to grow through the year, reporting a 53 percent jump in revenues up to AU$183 million.

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