Strong profits to end eventful year for iiNet
- 09 June, 2009 13:20
ASX-listed ISP, iiNet (ASX:IIN), is predicting strong profit growth to top off an eventful financial year.
In a statement to the ASX, iiNet, said it is expecting to reap $25 million in net profit and revenue in excess of $415 million for the full financial year to June 30.
“We’re very happy with the continuing growth and financial performance,” managing director, Michael Malone, said in the statement. “The anticipated results demonstrate that we are delivering on our strategy and the synergy commitment we made following the acquisition of Westnet in May 2008.”
The country’s third largest ISP also extended its debt financing facility with Westpac Banking Corporation for three more years, giving it a funding capacity of up to $60 million.
In February, iiNet reported a 75 per cent rise in revenue for the half-year to December 31, along with a 50 per cent rise in net profit to $11.4 million. At the time the ISP said it had increased on-net subscribers by 13 per cent to more than 196,000 and telephony-over-IP subscribers by 25 per cent to more than 100,000.
The guidance forecast comes after an eventful year for the ISP, which saw it taken to court by the Australian Federation Against Copyright Theft (AFACT), on behalf of different movie studios, in November. AFACT alleges iiNet infringed on copyright laws by allowing its subscribers to download pirated films through Bit Torrent and peer-to-peer (P2P) networks.
In May, as part of the ongoing court action, AFACT dropped a portion of its legal case, giving the ISP a small victory. And earlier this year, iiNet withdrew from the Federal Government’s controversial Internet filtering trial, with managing director, Michael Malone, describing the trial as a waste of taxpayers’ money.