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M2 revenue boom on back of Dodo, Eftel takeover

M2 has reported revenue of AU$681 million, up 73 percent from a year earlier, after its acquisitions of Dodo and Eftel.
Written by Corinne Reichert, Contributor

Australian telecommunications wholesaler and retailer M2 today announced its annual results for financial year 2012, with net profit after tax of AU$43.8 million, up 33 percent from AU$33 million. Its total revenue was up 73 percent from AU$393.5 million to AU$681 million, with earnings before interest, tax, depreciation, and amortisation (EBITDA) up 80 percent, from AU$60.1 million to AU$108.1 million. Shares are worth 10 cents each, up 11 percent from a year earlier.

During FY12, the telco completed its integration of Primus, which it acquired for AU$192.4 million in April last year; rolled out 15 new National Broadband Network (NBN) points of interconnect; and deployed the second phase of its business support system known as "Ninja".

Its acquisitions of Dodo and Eftel, announced in March this year, were completed by May 1 via syndication of a three-year term debt facility of AU$400 million and 19 million M2 shares.

"The acquisitions are an excellent complement to our consumer division, and combined, our business possesses an excellent capability to grow our share of both the consumer and small-to-medium business markets," M2 CEO Geoff Horth said in March.

Thanks in large part to its takeover of Dodo and Eftel, its total staff count increased from 956 to 3,131 over the last 12 months, including 1,900 employees in the Philippines.

M2 has more than 1.4 million active post-paid services, and with its most recent acquisitions, it also provides electricity and gas, and home, contents, and car insurance for consumers and SMBs.

This time last year, M2 announced a 20 percent jump in profit.

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