Investment shrinks Commander profits
- 24 February, 2006 07:30
Commander has flagged more acquisitions in the data and telecoms space as part of its charter for the year. The news comes off the back of half-yearly results, which show revenue and gross profits up, but net earnings and profits down.
The communication services company's revenue increased by $29 million during the six-month period to reach $319 million. Gross profits also rose by 12 per cent to $93 million. However, net earnings slid by 15.6 per cent, from $19 million in the same period a year earlier to $16.1 million. Net profit was also down from $10.5 million to $6.8 million.
Commander managing director, Adrian Coote, brushed aside the profit slide. Despite its investments into network infrastructure and managed services skills, as well as the acquisition of the Personal Broadband iBurst network, the company had still managed to beat its own $13.1 million EBITDA expectations, he said.
Network equipment and services represented 41.4 per cent of the company's total revenue. Data accounted for 34.1 per cent with traditional voice services totalling 24.5 per cent.
Coote said all divisions had performed strongly. In particular, its managed services business had been boosted by an outsourcing contract with wine and beer producer, Foster's Group, and was expected to be a growth area this year.
See next week's ARN for more on this story.