iiNet profits jump 29 per cent

iiNet profits jump 29 per cent

Revenue from subsidiary, Westnet, contributed to the good results

After acquiring Internet service provider (ISP), Westnet, over a year ago, iiNet (ASX: IIN) has bumped up profits by 28.8 per cent to $25.6 million.

In iiNet’s preliminary financial reports the company’s revenue hit $418.4 million, a 66.5 per cent increase from the last financial year and earnings before tax, depreciation and amortisation (EBITDA) was up 42 per cent to 67.2 million.

Small business unit revenues reached $24.3 million, up 43 per cent. Free cash flow was $20.9 million.

The Western Australia ISP cited a full year contribution from its subsidiary, Westnet, and a continual growth of its broadband and telephony products as key factors in the positive financial outcome. Customer service numbers has jumped by 10 per cent to 753,000. Subscribers to iiNet’s NakedDSL service skyrocketed by 123 per cent to 67,000. Overall numbers represented 8 per cent share of the broadband market, which was up from 4 per cent in 2007.

The company also attributed customer service as playing a big part in its success. Performance from the ISP’s new call centre in Cape Town has improved service levels and increased customer loyalty. According to a statement by iiNet managing director, Michael Malone, churn declined by 25 basis points to 1.83 per cent year-on-year.

He also saw the impending National Broadband Network as a great opportunity for iiNet and said the company is well placed for even better results in 2010.

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