iiNet expects full-year profit to hit $25mArticle from: AAPFont...

iiNet expects full-year profit to hit $25m
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By Leah McLennan
June 09, 2009 12:16pm
INTERNET service provider iiNet is expecting a 7 per cent lift in net profit this financial year and says it has headroom to pursue acquisitions.

iiNet says it expects "strong growth'' for 2008/09, with expected full-year net profit of $25 million, up from $23.3 million in the previous financial year.

Revenue for the year to June 30, 2009, was expected to be more than $415 million, iinet said.

That compares with February's revenue forecast of over $400 million.

The company, which has grown from a small Perth business into the third largest interest service provider in Australia, said earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to be over $65 million.

iiNet, which bought rival internet service provider Westnet for $81 million last year, said the acquisition had delivered synergy savings.

"The anticipated results demonstrate that we are delivering on our strategy and the synergy commitment we made following the acquisition of Westnet in May 2008,'' managing director Michael Malone said.

iiNet also said it had been granted an extension to its existing debt facility with Westpac for a further three years, equivalent to a $60 million increase to funding capacity.

The company said it currently had net debt of $24 million, leaving it with headroom to pursue growth through takeovers or expanding current operations.

"IiNet has very low debt, with gearing of only 12 per cent and interest cover of 16 times,'' Mr Malone said.

"We acknowledge Westpac's continued support of our business and our push for further growth in 2010 and beyond.''