25 February 2010 - Macquarie Telecom delivers 67.5% increase in net profit after tax for the half-year
Key Points
- Macquarie Telecom delivers net profit after tax for
continuing operations of $4.8 million for the six months
ended 31 December 2009, up 67.5% on the six months ended 31
December 2008 (“previous corresponding period”).
- EBITDA profit for continuing operations of $13.7 million, an
increase of 18.8% on the previous corresponding period.
- Continued transition to higher-margin revenue; Hosting
EBITDA profit rose 37.4% to $6.2 million and is now a major
profit contributor to the business.
- Telco EBITDA
profit rose to $10.6 million, up 3.3% on the previous
corresponding period.
- Successful sale of Macquarie
Singapore to CITIC 1616 Holdings for cash consideration of
$9.4 million completed on 31 July 2009. Net profit after tax
including discontinued operations was $12.3 million for the
six months ended 31 December 2009, compared to $3.1 million
for the previous corresponding period.
- Macquarie
Telecom maintains a healthy balance sheet with cash and cash
equivalents of $50.3 million, having generated strong
operating cash flows of $13.3 million.
- Positive
outlook with FY2010 guidance of $26 - $28 million EBITDA
from continuing operations and a clear strategy for growth.
Operational Review
Australian
telecommunications carrier, Macquarie Telecom (ASX: MAQ),
today announced that earnings before interest, tax,
depreciation and amortisation (EBITDA) from continuing
operations had risen to $13.7 million for the six months
ended 31 December 2009, compared to $11.6 million in the
previous corresponding period (six months ended 31 December
2008), representing an increase of 18.8 per cent.
The company also announced that net profit after tax from
continuing operations had improved from $2.9 million in the
previous corresponding period to $4.8 million, an increase
of 67.5 per cent. The Chairman of Macquarie Telecom,
Robert Kaye, said: “Macquarie Telecom has delivered a strong
half year result on the back of successfully executing on
its strategy. Macquarie Telecom has successfully extended
its market leadership in managed hosting as it continues to
transition to a higher-margin mix of revenue and is well
positioned financially with a robust balance sheet,
including $50.3 million in cash and cash equivalents.”
Macquarie Telecom’s Hosting business displayed continued
strong revenue growth of 27.4 per cent on the previous
corresponding period, contributing $20.5 million in revenue.
The profitability of the Hosting business also increased
during the half year with an EBITDA of $6.2 million, up 37.4
per cent on the previous corresponding period.
Macquarie Telecom’s Telco (Data,
Voice and
Mobile) business
remains an important part of the company’s overall offer,
also delivering $98.8 million in revenue and an EBITDA
profit of $10.6 million, up 3.3 per cent on the previous
corresponding period. Capital expenditure for the
half year was $7.6 million. Strategy and Outlook
Macquarie Telecom remains focused on delivering
shareholder returns through growth of their two core
businesses: Hosting and Telco. The
Hosting business
is a key growth platform and Macquarie Telecom will continue
to pursue its strategy of enhancing its market leadership
position through growth in market share. The Telco
business will continue to be a core offering of Macquarie
Telecom and the company remains focused on delivering
superior customer service and growing its corporate client
base. Macquarie Telecom Chief Executive, David
Tudehope, said: “Despite some of the fluctuations of a
recovering economy, Macquarie Telecom enters the second half
of 2010 in healthy shape and is well positioned to deliver
strong 2010 full year results. “The company
has a highly skilled and experienced management team that is
executing on the company’s growth strategy and we will
explore acquisition opportunities to accelerate that growth.
Notwithstanding that Macquarie Telecom’s organic growth is
fully funded for the foreseeable future, given its strong
balance sheet and healthy cash flow.” Positive Outlook for FY2010
Macquarie Telecom
forecasts its EBITDA from continuing operations for the full
year to be between $26 - $28 million. Capital
expenditure for the full year is expected to be between $15
million and $17 million. - Ends - | 
