Commander trumpets full year expectations

Commander has announced that it expects net profit for the full year ended 30 June 2005 to be up 150 percent to $23.6 million on revenue of $615.1 million.

The NSW-based communications service provider released its preliminary final report to the market on Monday.

Commander said in a statement to the ASX that it had lifted revenue 25 percent for the full 2004-05 year to $615.1 million and profits before tax 278 percent to $27.5 million.

Net profit after tax for the financial year was expected to top out at $23.6 million, 150 percent more than the previous year's result, the company said.

"Exceptional EBITDA performance was achieved from growth in revenues and gross margins in all business segments," Commander said. "Full year 2005 was a very strong year for Commander."

Expenses had fallen as a result of last year's restructuring efforts and lots of bundled systems were sold, the company added.

Also, Commander had managed to resign "inertia" rental customers to term contracts and had enjoyed strong last quarter enterprise data sales, the company said.

Adrian Coote, managing director at Commander, said the service provider was aiming for another 13 to 23 percent increase in revenue to between $695 million and $755 million for the full year 2005-06.

"[But there will be a] reduced EBITDA ratio due to investment in Personal Broadband Australia (PBA) of $1.5 million, product development of $3 million and decline in maintenance revenue [of] $8 million," he said in a company presentation.

EBITDA was forecast to increase between two and 11 percent to $50 million to $55 million, he said.

Coote said productivity would remain key. Commander would keep upgrading its back office systems to promote growth and increase its work through the channel when it came to broader services and product platforms.

Competition in the SMB market would intensify and further industry consolidation was forecast, he said.

Non-stop wireless as an option for "last mile" connectivity would come into its own, and Commander expected to benefit from increased direct outsourcing by corporations, he added.

That said, telecommunications would remain unpredictable until Telstra "issues" clarified, Coote said.