M2 rakes in 53 per cent profit increase in full year results

M2 rakes in 53 per cent profit increase in full year results

Group which controls Dodo and iPrimus posts more than $1 billion in revenue

The group which controls iPrimus, Dodo, Engin and Commander has reported a 53 per cent profit surge in its full year results.

M2 Group has reported a profit of $67.1 million and revenue of $1.02 billion, and increase of 50 per cent.

The M2 Board of Directors has also declared a final FY14 dividend of 14.5 cents per share, fully franked, taking the full year dividend to 26 cents, an increase of 30 per cent on the prior year.

The directors have further declared that the Dividend Reinvestment Plan (DRP) will be made available to shareholders for the dividend payable on 30 October 2014, at a 5 per cent discount. Election notices for participation in the DRP must be received by M2 no later than October 10.

The result followed the restructure of the group's our sales and service operations for the Business and Consumer segments, improving sales conversion and customer experience.

Throughout the year, the group recorded 8 per cent organic growth in services in operation with 121,000 post paid services added in the period, including 70,000 new broadband subscribers and 37,000 new energy customers.

M2 chief executive, Geoff Horth, said the results proved the group's ability to grow organically while simultaneously delivering on its track record of successful business integration.

"The growth platform we built in FY14 positions us well to continue our strong performance in FY15 and beyond," he said.

"The talented and hard working team at M2 has shown the best of their abilities this year to achieve this outstanding result; my thanks go out to them for all of their hard work.”

The year also included the company's launch of the Dodo NBN offer, effectively harnessing M2’s existing NBN infrastructure to launch a low-cost NBN offer to its target market.

It Connected 15 new NBN Points of Interconnect (POIs), significantly expanding its NBN footprint

It rolled out 14 new Dodo Connect Kiosks in shopping centres around Victoria and launched the Dodo 4G mobile offer to a receptive market, with mobile exhibiting growth in Q4, according to a company statement.

It also completed an Engin brand refresh, in a bid to take the brand to the small office/home office and micro business markets.

Read more: M2 releases shares from voluntary escrow

Horth said the company's organic growth agenda continued into FY15 as it looked to further increase profitability and returns to shareholders.

"FY15 will again see us increasing our investment in targeted above and below the line marketing to drive leads into our expanding sales channels, as we extend our range of products and services and increase our focus on cross selling to existing customers," he said.

"As always, this will be conducted with our relentless focus on reducing costs and improving our business."

Follow Us

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags CommanderiprimusdodoenginM2 groupGeoff HorthM2 chief executive


Show Comments