looking at iinets valuation and the oz vs nz busin

In page 28 of the link listed below which shows iiNets 2006 full yr result which was announced on Sept 12, there is an interesting little piece on segment reporting which seperates the Australia operations revenue from the NZ(ihug) operations. ihug only generated $34 million out of iiNets total of $248 million or just under 14% where as Ozzie operations generated $214 million or 86%.

In saying this they got 36 million ozzie for 14% of their business. So what is the ozzie operations really worth. Id say the ozzie operation which includes adsl2+ is much more attractive the ihug is(was).

i wouldnt be suprised if iinet has ozzie operational revenue of around 250 million by the end of this yr (currently 214 million as at June 30 2006). On this revenue alone id say the company is probably worth around $200 million - debts of around $50 million which leaves us with a cool $150 million/121 million shares = $1.23 and thats being conservative.

Plus there are tax losses to carry forward of $68 million which will provide some decent tax shelter albeit previous yrs heartache.

Interesting times