iiNet net profit jumps 122 per cent
- 21 February, 2013 09:21
iiNet’s (ASX:IIN) $165 million acquisitions of Internode and TransACT have paid off for the ISP, with the acquisitions helping to drive a 122 per cent jump in net profit to $32 million, the company reported.
For the six months to 31 December, 2012, revenue increased 30 per cent to $474 million and operating cash flow increased 204 per cent to $72 million, driven by the Internode and TransACT acquisitions and organic growth in products per customer and business customer revenue, according to iiNet.
“The company’s strong cash flows have enabled us to pursue attractive strategic acquisitions, quickly pay down debt and grow dividends. iiNet’s recent entry into the S&P/ASX200 Index is a milestone we are all very proud of,” Michael Malone, managing director and CEO at iiNet, said in a statement to the ASX.
The ISP has introduced several new products into the market to increase the average number of products per customer to 3.0 to help reduce churn and drive revenue.
iiNet currently has 108,000 mobile customers, with average products per customer up from 1.8 to 2.2 during the six months.
Recent iiNet offerings include the Samsung Galaxy handset, tablet and camera, a new modem and a cloud hosting service.
iiNet also recently announced bundled business plans for the National Broadband Network (NBN).
“We are in the best position we have ever been in the company’s 20-year history,” Malone said.
“Our market leading product suite for retail and business customers, increasing market awareness, obsession with customer service and successful acquisition track‐record places us in a unique position to grow in a very competitive marketplace.”
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