M2 acquisition of Primus pays off

M2 Communications’ (ASX:MTU) net profit after tax has jumped 47 per cent to $24.7 million, driven by its Primus acquisition contributing strongly to revenue and earnings, the company reported today in its half-year results.

The company acquired Primus in June 2012 for $192.4 million.

“Following the acquisition of Primus in June 2012, our team has worked tirelessly on integration and to deliver synergies which will positively impact our earnings in the second half of this financial year,” Geoff Horth, M2 CEO, said in a statement to the ASX.

M2 said the Primus acquisition has increased M2’s capabilities in the National Broadband Network (NBN), cloud, IP voice and hosted voice.

Revenue at M2 increased 65 per cent to $305.2 million for the half year.

M2 Communications confirmed its full-year results are on track for a 38 per cent increase in net profit after tax to $43-48 million. Revenue is expected to increase 60 per cent to $610-650 million.

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