iiNet profit jumps 19 per cent
- 20 February, 2014 10:44
iiNet is continuing to see the benefits of its acquisitions over the past five years, recording what it calls a record result across all key metrics for the first half of the 2014 financial year.
The ISP recorded a 19 per cent increase in net profit after tax (NPAT), reaching $31 million for the six months ended 31 December 2013, despite statutory net profit after tax dipping nine per cent to $29 million.
Total revenue (which includes four months of Adam Internet revenues) grew four per cent to $493 million. iiNet's business revenue is calculated to represent 20 per cent of the group's total following a five per cent increase. Earnings before interest, taxes, depreciation and amortisation (EBITDA) were up six per cent to $95 million.
iiNet accounts for 25 per cent of the National Broadband Network, claiming it has more than 30,000 active customers.
With the acquisitions of complementary businesses complete (or in some cases nearing completion), iiNet said it will focus on organic growth and maximising operational performance moving forward.
"We have integrated the networks of TransACT and Internode, and the Adam Internet network integration is on track for completion this quarter," iiNet acting CEO, David Buckingham, said.
The company also reduced operating costs by four per cent, excluding new Adam Internet costs, and costs related to M&A activity in the half, with operating cashflow reported at $72 million. Buckingham claims this has underpinned iiNet's ability to increase dividends to shareholders.
A fully-franked interim dividend of $0.09 has been declared, up 13 per cent on the interim fully-franked 2013 dividend.
"Over the past six months we reached our all-time high net promoter score of 60 per cent in two months, added 16,000 net new broadband customers and continued to grow our business customer revenues by five per cent," Buckingham said.