Hosting up, voice down for Macquarie Telecom

 

Higher margin business and acquisitions planned.

Macquarie Telecom has reported a 67.5 percent increase in its net profit after tax (NPAT) in the second half of 2009, despite a 6.8 percent revenue drop from the previous corresponding period.

The ASX-listed telco and hosting company (MAQ) recorded an NPAT of $4.8m and revenue of $119.4m, and boasted a positive outlook for the current financial year (FY2010).

Hosting revenue was up 27.4 percent to $20.5m, representing 37 percent of business profitability.

Meanwhile, revenue from its telecommunications business fell 7.8 percent to $98.8m, due to price competition and fixed-to-mobile substitution, Macquarie reported.

Looking forward, the company planned to continue investing in its hosting business and explore acquisition opportunities. It held $50.3m in cash and cash equivalents.

It also expected to report capital expenditure of between $15m and $17m in FY2010, which it said would be higher than the previous year due to investment in a new contact centre in Sydney.

Future growth would be driven by good customer service and the company's continued transition to a higher margin business, investors heard.


Hosting up, voice down for Macquarie Telecom
 
 
 
 
 
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