Melbourne IT chalks up record-breaking revenue result

Melbourne IT chalks up record-breaking revenue result

Registrar has acquisitions on the cards for 2008

Domain name registrar, Melbourne IT, has achieved double-digit growth for its fifth consecutive year, increasing revenue by 49 per cent to $154.4 million in the year ending December 2007.

The business and consumer division was its powerhouse performer, increasing revenue by 36 per cent to $41.3 million. Contribution margin grew 110 per cent to $11.2 million.

"We've increased customer numbers as well by over 10 per cent to 325,000 SMEs," CEO and managing director, Theo Hnarakis, said. "With the additional services such as promotions manager, Manager Exchange, and dedicated server and search engine marketing, we expect to show healthy growth in the future."

The company's reseller division chalked up 23 per cent growth to record revenues of $60.4 million. Melbourne IT's corporate and government sector proved one of the fastest growing division, achieving $23.3 million revenue. Hnarakis said the company had introduced 131 new customers in 2007.

"We continue to see strong demand for virtualisation services with over 60 per cent of new sales based on the virtualisation platform," he said.

Revenue through its corporate brand services division was also up 22 per cent to $17.1 million. The division consists of three service brands based on protecting business digital brands, managing the brands and optimising their performance.

The 2007 results incorporate WebCentral, which Melbourne IT acquired in August 2006. Hnarakis said the company planned to accelerate growth this year through mergers and acquisitions. The company expects to increase its capital expenditure from around $6 million in 2007 to almost $15 million in 2008.

"We believe the volatility of the market is throwing up some interesting opportunities," he said. "The areas we are looking at include corporate brand services and hosting markets."

Melbourne IT will also launch a new datacentre in Brisbane, adding an additional 10 per cent capacity to its local footprint. Other plans include developing its order management and billing systems and storage and email solutions.

"Our focus is to continue growing our market share and we expect to benefit from that in 2008 where we actually see scalability having an impact and our profitability improving," Hnarakis said.

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