Macquarie boosts earning expectations

Macquarie boosts earning expectations

First half-year earnings tipped to be up from $17 million to $20 million.

Macquarie Telecom (ASX:MAQ) has boosted its earnings expectation to $20 million for the first half of its financial year as a result of growth in its hosting business.

The telco previously expected to garner earnings before tax to the sum of $15 million to $17 million for its first half financial year period ending 31 December 2010. The upgrade to $20 million is 46 per cent more than the last corresponding period.

Earnings before tax from continuing operations for the full year ending 30 June 2011 is estimated to be between $37 million to $39 million. This is a growth of 30 per cent from last years result.

Macquarie Telecom has attributed its growth to a strong outsourcing and hosting business. The telco launched its enterprise cloud infrastructure-as-a-service (IaaS) offering last week on the back of encouraging performance from its existing hosting services.

Its $10.8 million North Ryde datacentre, the IntelliCentre 2, is set to be completed by Christmas.

The business has a cashflow of $45.4 million and no debt as of 31 December last year.

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