NBN customers boost iiNet revenues past $1 billion milestone

NBN customers boost iiNet revenues past $1 billion milestone

iiNet now has more than 40,000 active NBN customers and 20 per cent of the market

Internet service provider, iiNet, has recorded more than $1 billion in full-year revenues on the back of 40,000 active NBN customers.

The company posted a profit of $65.8 million - up 19 per cent - while its earnings grew faster than revenues with underlying EBITDA up 9 per cent to $196 million.

It now also has more than 40,000 active NBN customers with continued high market share of 26 per cent and 19 per cent in greenfield and brownfield areas.

iiNet chief executive, David Buckingham, said the strong results were a result of the company delivering on its strategy of growing market share and improving margins.

"having successfully acquired and integrated a number of complementary businesses over the past few years, the company is now focused on growing organically and maximising it's operational performance," he said.

"We know that our focus on delivering the very best products and service to our customers is the right strategy for organic growth.

"Over the past year we reached our all time high net promoter score of 60 per cent, added 40,000 net new broadband customers and continued to grow our business customer revenues to $204 million, now 20 per cent of total group revenue."

The company had an operating cashflow of $146 million, up six per cent and a strong balance sheet with gearing down to 50 per cent.

It has reported a total dividend of 22 cents per share fully-franked.

iiNet now has 950,000 customers and more than 1.83 million total services nationwide.

Business revenues were also up 11 per cent to $204 million.

Buckingham said that iiNet had leveraged its core growth foundations to produce the returns seen over the period.

“The most pleasing aspect of these results is our return to organic growth," he said.

"This growth reflects three simple things done very well – customer service, product innovation, and effective brand marketing – which have worked together to lift iiNet brand awareness across all key states and delivered exceptional sales growth.

“Our proactive approach to the NBN roll out continues to pay dividends. We now have over 20 per cent share of the NBN market with over 40,000 iiNet customers on the NBN and more than 50 per cent of our NBN customers are new to iiNet.

He said the company continued to take full advantage of its capabilities across all access technologies and that he expects iiNet’s NBN subscriber base to continue to grow as the roll-out speeds up.

“iiNet’s business revenue has grown to $204 million of revenue, now comprising 20 per cent of total group revenue.

"We will continue to expand our offering in this customer segment while delivering a great service experience."

He said the company's new hosted Microsoft Outlook services made it much simpler and more cost effective for small businesses to manage their IT requirements, and the it would continue to expand its suite of these services in FY15.

“iiNet continued to deliver strong operating cash flow this year allowing for further investment in growth capital while paying down debt and increasing dividends," he said.

"The company’s net bank debt was up only $5.3 million even after the acquisition of Adam Internet, clear evidence of the very strong cash flows being generated by the company.

Buckingham said there was more growth to come.

“We are excited about the growth prospects of the business as we execute our growth strategy to leverage our core and extend our brand," he said.

"iiNet was founded 20 years ago by Michael Malone with a culture of doing things differently.

“Having grown the business from his parents’ garage into the second largest provider of DSL broadband in Australia, we applaud Michael for the tireless leadership he provided and wish him well with his future endeavors since retiring from the business in March."

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Tags NBNfull year profitDavid Buckinghamfull year resultsiiNet chief executive


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