iiNet added over 25,000 new broadband customers in the first half of the 2015 financial year, delivering record revenue of $547 million along with an underlying net profit after tax (NPAT) of $31.6 million.Revenue for the half year was up 11 per cent year-on-year, while underlying NPAT remained comparatively flat, coming in at a 1 per cent rise, with the growth in broadband now seeing iiNet’s broadband customer base total 975,000.
iiNet CEO David Buckingham stated that over the past 12 months iiNet has generated close to 50,000 broadband net additions.
“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,” he commented.
Strong cash flows have allowed iiNet to reduce leverage while also investing back into the business, Buckingham stated.
“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 investment, in order to better service our growing customer base which is fast approaching the one million mark,” he commented.
With iiNet now having over 60,000 NBN and fibre subscribers, Buckingham noted the impact of the NBN rollout, stating the “NBN continues to represent a significant area of growth for the company”.
“Given iiNet’s position and product capabilities, the company remains well-positioned to capitalise on the changing landscape of a ramped-up NBN rollout plan,” he stated.
He added that the acquisition of a majority stake in Tech2 Group has provided iiNet “with a leading capability in in-home and NBN installation services”.
“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 commented.
