iiNet edges closer to one million customers

Revenues up 11 per cent to $547 million and net profit slightly rises to $32 million
iiNet's David Buckingham.

iiNet's David Buckingham.

Internet service provider, iiNet (ASX:IIN) is close to hitting one million broadband customers after counting 25,000 new broadband customers (975,000) during the first half of the 2015 financial year.

In the six months leading to December 31, iiNet achieved revenues of $547 million, up 11 per cent and underlying net profit of $32 million, up one per cent.

“We have improved our core broadband products with refreshed plans and grown our product line to include standalone mobile phone contracts, Apple iPhone products, home installations and tech support for NBN and audio-visual systems,” iiNet CEO, David Buckingham, said.

The NBN was a significant area of growth for iiNet, which has more than 60,000 NBN and fibre subscribers, he said.

“The acceleration of the NBN rollout and introduction of new technologies to the process, presents the potential for a faster rate of organic growth through an increasing number of new connections per week,” he said.

Buckingham highlighted growth opportunities within the small business segment, which he said was still under serviced for its telecommunications needs.

“iiNet’s strong cash flows have allowed us to reduce leverage while also investing back into the business to pursue growth and better position iiNet for the changing competitive landscape,” he said. “The majority of the company’s capital expenditure over the past six months was invested in enhancing our capacity to support growth through increased network capacity, improved IT systems and corporate investments, in order to better service our growing customer base, which is fast approaching the one million mark.”

It also acquired a majority interest in tech2 Group, which supplies communications build services, remote and in-home technical support and installation services.

In February iiNet joined the AllSeen Alliance, which is a consortium of 120 global companies including device and software manufacturers, to advance an open source standard for the Internet of Everything to promote true device integration in the home.