iiNet reports record profit increase

More customers get Naked.

iiNet today reported profits had increased 44 percent over the past financial year to almost $26m and said its naked DSL customer base had grown by 123 percent.

Australia's third largest ISP claimed that 67,000 broadband customers have now ditched their phone line and subscribed to its naked DSL service.

The company said it now has around 500,000 customers using a total of 753,000 services.

Managing director Michael Malone said the company was now in a "very strong operating position" and was hoping to further fuel growth with "appropriate acquisitions".

"We made a strong statement in the results that we are looking to grow the business. We will distribute some cash back to the shareholders ... but we are still looking for acquisitions," said Malone.

iiNet vs AFACT
Commenting on the iiNet's high profile copyright case, where the company has been ordered by Australia's Federal Court to hand over records of customers accused of piracy, Malone said that by complying with the order, iiNet would be breaking the law.

"What we are being asked to do ... would be a criminal act for us to engage in. There are good policy reasons as to why Australia Post should not be opening your envelopes and checking inside them and there is good pubic policy reasons why carriers should not be listening to your phone calls or examining what you download," Malone said.

Further delays for IPTV launch
iiNet's plans to provide an IP-based television service faced further delays.

"I'll be surprised if we have a commercial product out by Christmas ... I think it will be slipping into the first half of next year," said Malone.

"We are still playing around with our own box and a couple of others. The market is moving real fast - I am seeing integrated televisions with 500gb hard disks on them so we want to get a box out there at the right price point that does all the basic functionality - time shifing and recording - but has integrated IPTV as well".