iiNet flags potential acquisitions

Perth-based ISP, iiNet, has recorded a financial windfall and flagged possibilities for further acquisitions to grow its business.

Revenue was up 11 per cent to $228.1 million in the six months to December 31 compared to the first half of the year. Pre-tax profit jumped 20 per cent to $37.4 million and net profit was up 30 percent to $14.8 million.

Small business unit revenues hit 24 per cent to $15.8 million and underlying operating cash flow has almost doubled, reaching $40.2 million.

iiNet’s customer base also grew, with total subscribed services numbers up by five per cent to 799,817 with over 300,000 connected to the company’s DSLAM network. Total number of clients reached 500,000 and Naked DSL customer numbers has reached 86,905; a 30 per cent increase.

iiNet CEO, Michael Malone, said in a statement the strong financial and operational results would enable the ISP to focus on organic growth as well as exploring further acquisition opportunities. Fellow Perth ISP, Westnet, was snapped up by iiNet in 2008.

Driving brand awareness, providing more online content and bringing forth new products will be key to continuing iiNet’s success in 2010, according to the ISP. iiNet has consistently invested in its online content portal, Freezone, which provides subscribers with un-metered legal content such as material from ABC iView, Xbox 360 and ninemsn. It is also gearing up to bring IPTV to Australia this year.

The financial figures exclude the legal costs spent on iiNet’s court battle with the Australian Federation Against Copyright Theft (AFACT), which is estimated at around $4 million.

AFACT had accused the ISP of authorising movie piracy on its network by not preventing its subscriber base from downloading illegal copyright content. iiNet denied the allegations.

The verdict was announced early this month with iiNet ultimately winning its case and AFACT ordered to pay the ISP’s legal cost.

For a detailed timeline of the court case, click here

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