iiNet posts strong half-year results as revenue grows 11% to $547 million

iiNet has posted its results for the six months to December 2014, with revenues of $547 million, up 11% from the same period a year earlier and net profit after tax up 3% to $32 million.

While there was a slight increase in iiNet’s net debt, from $337.4 million in the first half of FY14 to $382.7 million for the same half this year, and its tax paid increased from $19 million to $22.9 million, its gearing fell from 62% to 56%.

The telecommunications and internet giant grew its core broadband user base to 975,000 customers during the six months, up 25,000 from a year earlier, while its phone bundling rate increased to 74%. Of its user base, 60,000 customers have made the transition to the National Broadband Network.

iiNet also saw strong growth in fixed phone products, which grew from 431,000 to 472,000, as well as in VoIP (229,000 to 254,000), mobile (144,000 to 167,000) and online TV (30,000 to 41,000). Another key area of growth for the company was from business customers, with revenues up 5% half-on-half to $106 million.

Looking forward, iiNet said it will aim to increase its market share in the eastern states and to take advantage of growth opportunities from the further rollout of the NBN, while also extending its mobile phone offering and product bundling.

The company also sees future growth opportunities through new NBN-based capabilities, home technology installations through its tech2 subsidiary, and the Internet of Things through its membership in the Allseen Alliance, which is backed by Sony, Microsoft and LG.