iiNet hits $1 billion in revenue, but network and customer acquisition costs rise

iiNet’s revenue grew by 7% during the 2014 financial year, with its recent acquisition of Adam Internet helping to offset an increase in network costs.

Overall, iiNet reported full year revenues of $1 billion, up 7% from $940 million the previous year, with profits after tax of $63 million, up 3% from $60 million a year earlier.

iiNet also booked $8.6 million in net assets and $51.7 million in goodwill against its $60 million takeover of Adam Internet in August last year.

However, the company also reported a year-on-year increase in a number of expenses, including employees (from $144 million to $156 million), marketing expenses (from $34.8 million to $37.9 million) and network costs (from $494 million to $545.8 million)

iiNet’s total liabilities rose from $193 million a year ago to $205 million this year, alongside growth in total assets from $826 million a year ago to $870 million. Overall, its net equity increased from $324.3 million to $355.9 million.

In a statement to investors, iiNet chief executive David Buckingham said the company will switch from growing through acquisitions to pursuing “growing organically and maximising its operational performance”.

“Over the past year we reached our all-time high net promoter score of 60%, added 40,000 net new broadband customers and continued to grow our business customer revenues to $204 million, now 20% of total group revenues,” said Buckingham.