Macquarie Telecom delivers record full year profit

Macquarie Telecom delivers record full year profit

Net profit after tax up 10.6 per cent from the previous corresponding period.

Hosting and telco services provider, Macquarie Telecom (ASX: MAQ), has announced a record net profit after tax (NPAT) of $19.6 million for the full year ending June 30, 2012, up 10.6 per cent from the previous corresponding period.

The company has also delivered a record earnings before interest, taxes, depreciation and amortisation (EBITDA) result of $40.6 million, an increase of 9.0 per cent on the previous year’s EBITDA result of $37.2 million.

The record NPAT and EBITDA results were achieved from total service revenue of $218.9 million, down slightly on the previous corresponding period.

Macquarie Telecom chairman, Robert Kaye, said: “Macquarie Telecom has delivered a record full year result whilst investing in its Cloud computing capabilities and completing the construction of its second Sydney datacentre, Intellicentre 2."

Macquarie Telecom’s hosting business continued its strong revenue performance, growing by 9.0 per cent when compared to the previous corresponding period, contributing $58.5 million, or 27 per cent of total service revenue.

The hosting business recorded EBITDA of $15.3 million an increase of 5.9 per cent on the previous corresponding period.

Macquarie Telecom’s telco (data, voice and mobile) business delivered in $160.3 million in revenue and EBITDA of $31.2 million, up 8.9 per cent on the previous corresponding period. Strict cost control and automation has contributed to the improved margins in the Telco business.

Capital expenditure for the year was $51.9 million of which $27 million related to building construction, mechanical and electrical fit out of Intellicentre 2, $7 million related to software implementation and development and data centre networking, and the remaining $17.9 million related to business as usual capital expenditure.

Strategy and Outlook

Macquarie Telecom remains focused on being Australia’s number one managed hosting and integrated telco provider to business and government customers through the delivery of service excellence, the company said.

Chief executive, David Tudehope, said the company continues to experience increasing demand for its hosting services due to the growing trend of selective outsourcing of information technology.

“We believe this trend of outsourcing is accelerating due to higher speed internet connectivity driving new Web technology and the associated demand for managed hosting. In addition, we believe the emergence of Cloud computing, which is a natural extension of managed hosting, will increase this trend and provide new market opportunities for Macquarie Telecom,” Tudehope said.

Investing for future growth

In fiscal 2013 Macquarie Telecom will continue to invest in developing its Intellicentre 2 data centre and its Cloud Computing capabilities.

Capital expenditure for fiscal 2013 is expected to be about $34 million of which it is expected about $14 million will be spent on the expansion of Hosting capacity.

Key Points

  • Earnings before interest, tax, depreciation and amortisation (EBITDA) of $40.6 million, an increase of 9.0 per cent on the previous corresponding period.
  • Net profit after tax (NPAT) of $19.6 million for the year ended 30 June 2012, up 10.6% on the previous corresponding period.
  • A healthy balance sheet maintained with cash and cash equivalents of $30.8 million and a $30 million undrawn working capital facility in place.
  • Second Sydney Data Centre – Intellicentre 2 – open for business.
  • Declares a fully franked final dividend of 12.0 cents per share, with the total dividend for fiscal 2012 being 24.0 cents per share fully franked.
  • Positive outlook for fiscal 2013 and ongoing investment in future growth opportunities.

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