Delivery, that is what IIN need to concentrate on.
Looks like on this one they have just beaten their forecast to have 100,000 customers by July.
From May presentation:
iiNet now has 185,000 ADSL customers in Australia, behind only Optus and Telstra • Growth at around 4000 per month • iiNet is building an ADSL2+ network (“DSLAM”), which will cover 90% of metropolitan Australia by early 2007 • Other customers are on Telstra wholesale, higher costs, lower speeds • On track to have over 100,000 on our network by July and over 160,000 by June 2007
Not so tough forecasting 1 to 2 months in advance, the real test is if they can deliver on Phase II which is another 60,000 on their own DSLAMs in 1 year hence. If they can deliver on these type of objectives I expect the share price will take care of itself.
IIN Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
