Melbourne IT reports increased revenue

Company reports revenue of $69.2 million for first half 2015

Melbourne IT (ASX: MLB) has reported revenue of $69.2 million for the first half of 2015, up from $59.6 million in the prior comparable period last year.

Earnings before interest, tax, depreciation and amortisation (EBITDA) was $5.2 million, up from $3.6 million last year.

Net profit after tax was $1.2 million.

Melbourne IT CEO Martin Mercer said the results were supported by the realisation of $7.5 million in savings from the integration of Netregistry and contribution from acquisitions.

A further $2.5 million in savings would be realised from the integration of UberGlobal Group in 2017.

UberGlobal provides domain registration, hosting and cloud applications. It has 70,000 customers and over 400 resellers in Australia.

“We are confident in our ability to drive growth and profitability at Melbourne IT. We have a clear focus on the key drivers of shareholder returns and we are making good progress on all fronts,” he said.

Mercer added that efforts to arrest the decline in its core SMB business of domains and hosting are bearing fruit.

“Our total number of the core .au domain names under management has started to grow following a long period of decline,” he said.

“The transformation of our enterprise services division from a dedicated hosting business to a managed cloud service business is well entrenched and continues to gain momentum.”

In June, the company took a majority shareholding of 50.2 per cent in mobile app developer Outware Mobile for $21.7 million.

It eventually plans to acquire 100 per cent of the company by 2017.

At the time, Mercer said the company will become the leading software enabled cloud solutions provider in Australia.

Follow Hamish Barwick on Twitter: @HamishBarwick

Follow Computerworld Australia on Twitter: @ComputerworldAU, or take part in the Computerworld conversation on LinkedIn: Computerworld Australia

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