FlexiGroup 1H profit grows 31%

FlexiGroup (ASX:FXL), the company behind the BLiNK brand of mobile broadband services, said its 1H profit jumped 31 per cent partly due to strong volumes at this unit

Financing company and mobile broadband provider FlexiGroup (ASX:FXL) has reported a 31 per cent increase in 1H profit to $25 million.

The company, which provides wireless data services on the Optus network through the BLiNK brand, said volumes from this business increased 87 per cent to $179 million.

Its Flexirent financing unit grew sales volumes nine per cent to $117 million in what FlexiGroup said was partly down to success in serving the emerging tablet market.

The company expects tablet volumes of one million units in 2011 – half its computer and laptop quantities.

“Since the IPO in December 2006 [FlexiGroup has] more than doubled NPAT and volumes,” CEO John Delano said.

As a result of the strong showing, FlexiGroup upgraded its full-year profit guidance by 8.5 per cent to between $50 million and $52 million.

This would be an improvement of between 20 per cent and 25 per cent on groupwide profit from FY10.

FXL shares climbed 7.9 per cent during Thursday's trading to close at $1.840.

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