Strong Aussie dollar to impact Melbourne IT profit

Strong Aussie dollar to impact Melbourne IT profit

More than half of the Internet technology service provider's revenue comes from overseas markets

Internet-based technology services provider, Melbourne IT, has lowered its operating profit forecast, due to the strong Australian dollar against the greenback.

In a statement to the ASX, Melbourne IT, said more than half of its revenues are derived from markets outside of Australia.

It anticipates the strong dollar will impact its second half performance and full year results more than it previously expected, and expects a figure 5 to 10 per cent lower than its 2009 full year profit.

Melbourne IT’s Digital Brand Services unit will be impacted by the strong dollar, although it still expects the unit’s full profit to out perform 2009, but the growth will not be as great as initially anticipated.

Its subsidiary ForTheRecord’s profitability is expected to be down $700,000 on last year’s result.

The small business divisions GPS and SMB, are currently trading at slightly lower profit levels than last year.

But the company expects the enterprise services division to main its solid growth.

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Tags GPSsmbMelbourne ITannual profitForTheRecord


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