Macquarie Telecom repeats 70 per cent net profit increase

Macquarie Telecom repeats 70 per cent net profit increase

The business-only telco’s NPAT reached $17.7 million but revenue dipped slightly.

Macquarie Telecom (MAQ) has posted strong results for financial year 2011 with net profit after tax (NPAT) from continuing operations up by 70 per cent to $17.7 million despite revenue being slightly down.

The business-only telco also recorded a 70 per cent NPAT from continuing operations increase for its financial year 2010 results, from $6.1 million to $10.4 million.

In the previous corresponding year, Macquarie's net profit after tax from continuing operations was $10.4 million. This amount, however, does not factor in the 2010 profit from discontinued operations, which was $7.5 million.

Earnings before interest, tax, depreciation and amortisation (EBITDA) from continuing operations were up 28 per cent to $37.2 million.

Revenue for Macquarie Telecom dipped marginally in financial year 2011. It was $230.6 million as opposed to $238.1 million in the previous financial year.

Once again, the telco attributed its strong results to its healthy hosting business, contributing $53.7 million (24 per cent) of Macquarie’s total revenue. It recorded an EBTIDA of $14.6 million. This was down 4.2 per cent from last year but this was mainly due to a $3.6 million investment in cloud computing.

The data, voice and mobile division brought in $173.7 million in revenue and $28.6 million in EBITDA, up 40.4 per cent.

While it has a good $53.5 million cash and cash equivalent funds in the bank, the company did invest $60 million to expand its datacentre footprint with its Intellicentre 2 to be established in North Ryde, Sydney.

For the 2012 financial year, Macquarie will continue investing in expanding its datacentre and cloud computing presence.

The telco has also started its year-long journey to transform its business to accommodate for the National Broadband Network (NBN) as it is being rolled out.

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Tags financial resultsmacquarie telecom

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