Macquarie Telecom to invest $15m in hosting business

Strong results for the full financial year with more investment in capacity to come

Macquarie Telecom’s hosting business has risen to be one of the company’s major earnings contributors with a rise in earnings before interest, tax, depreciation and amortisation (EBITDA) of 55 per cent to $15.2 million for the 12 months to 30 June.

Overall, MacTel posted net profits of $10.4 million, up 70.8 per cent on the previous financial year. Telco EBITDA rose 5.4 per cent to reach $20.3 million.

In a statement to the ASX, Macquarie Telecom (ASX:MAQ) chairman, Robert Kaye, said the company remains focussed on increasing its market share in the “high growth industry of mission critical hosting”.

The company is forecasting continued growth and will spend an additional $15 million to expand its hosting capacity.

In July, the company opened a new $5 million call centre in Sydney, a move which bucks the outsourcing trend apparent in the telecommunications industry.

The 40-seat MacquarieHUB centre is expected to be in constant operation throughout the year for customers.

However, MacTel was forced on the back foot by claims it had retrenched staff, issuing a strong denial in the wake of the contact centre opening.

Also in late July, Telecom New Zealand (ASX:TEL) announced the $9.9 million sale of its stake in Macquarie Telecom.

Macquarie Telecom has also gone on record as saying the National Broadband Network (NBN) is its biggest business opportunity over the next few years.

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Tags hostingfinancial resultsmacquarie telecom

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