Bundled broadband growth drives Primus profit

Bundled broadband growth drives Primus profit

Primus Australia has announced it is set to achieve a net operating profit of more than $40 million in 2003 after posting a 30 per cent increase in third quarter earnings.

The telco has reported operating earnings before interest, taxes, depreciation and amortization (EBITDA) of $26 million in the third quarter to September 2003.

Third quarter net income from operations was $14.9 million, up from $7.2 million in the third quarter 2002.

Managing director of Primus, Greg Wilson, said the third quarter results showed a continuation of solid levels of growth that were contributing to a strong bottom line.

“We have achieved another record quarter of gross revenue and EBITDA as a result of strong take-up of new services in our target markets,” he said.

“Internet and data traffic has shown steady increases and remains a key driver of our improved financial results.

“Broadband numbers continue to show growth and there is a strong underlying trend in the take-up of bundled services."

Primus’ gross revenue in the September quarter was $138.2 million, an 11.4 per cent increase over the third quarter of 2002.

Primus has attributed the solid results to the recent Frustration Free broadband offering.

The telco will now focus on broadband and bundling packages as a way of increasing further revenue, with emphasis on the consumer market.

The number of broadband services grew by 25 per cent to 14,500 services. The number of customers taking up a bundled service offering increased by 11 per cent.

Wilson said that Primus was on track to comfortably meet its previously stated forecast for EBITDA and profitability for the full year.

“I am extremely pleased that we have been able to sustain and build upon our financial performance in the latest quarter,” he said.

“At a time when revenues in the telecommunications sector remain subdued, Primus Telecom has been able to grow its presence through a combination of aggressive marketing and [various product offerings].”

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