iiNet profit has best year ever
iiNet's chief executive Michael Malone. Picture: Nic Ellis/ The West Australian.

UPDATE 2.45pm iiNet will try to sell three products to every customer in order to grow its revenue base, as it launches into the mobile phone market.

Reporting results for its “best year yet”, the Perth-based internet service provider said net profit was up 11 per cent at $37.1 million and revenue rose 19 per cent to $831 million.

Chief executive Michael Malone said the result could be largely attributed to the acquisition of broadband providers TransACT and Internode, both bought in late 2011.

"Integration benefits from the two acquisitions are flowing through to earnings, and we are successfully unlocking the inherent value of the acquired businesses,” he said.

“We expect to fully integrate Internode’s and TransACT’s systems and networks over the next 12-24 months."

Mr Malone said the acquisition of Canberra-based TransACT boosted the company’s corporate and government portfolios.

Chief financial officer David Buckingham said iiNet had been working hard to streamline its sales process and expand the number of products each customer purchased.

iiNet, which started out providing internet only, has successfully added new products including broadband-delivered movie and television service Fetch TV in recent years.

“We have well over 800,000 customers, we want to understand those customers and make sure our service is the best it can be,” Mr Buckingham said.

“We want to get to three products per customer as quick as we can.”

Launching a new range of “mix and match” smart phone and SIM plans, with the cheapest plan starting from $10 a month, Mr Malone said iiNet was targeting a gap in a “choked” mobile phone market.

Mr Malone said iiNet could be competitive in the mobile market despite starting from scratch, as it was targeting its existing customer base, reducing credit risk and administrative overheads.

The company also announced it had appointed Internode co-founder and managing director Simon Hackett as a non-executive director to the board.

An 8¢, fully-franked, final dividend is 14 per cent higher than last year’s. The company paid a six-cent, fully-franked, interim dividend.

Shares in the company closed up 3 cents to $3.55.

The West Australian

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