B Digital half-year net profit $8.1m; revenues up 47pc
19:58, Thursday, 24 February 2005
Sydney - Thursday - Feb 24: (RWE Australian Business News) - B
Digital Ltd lifted net profit 217 per cent to $8.12 million in the
half-year to December 31 from $2.56 million a year earlier.
Earnings for the period included significant items totalling
$2.2 million, representing $1.1 million arising from redundancies, $0.74
million arising from write-offs associated with the relocation to new
offices and $0.4 million associated with legal and professional fees for
potential acquisition opportunities not progressed.
Revenues rose 47 per cent to $165.75 million from $112.87
million, driven by the re-launch of simple, value-based mobile plans and
bundles, and the contribution from digiPlus.
"At the same time, a concerted effort was made during the period
to improve the quality of the customer base," directors said.
B Digital ended the half-year with a "quality base" of 549,000
services including 26,000 prepaid subscribers and 33,000 total service
users.
The group's December cash balance of $19.1 million reflected an
increase in operating cash flow from operations of $12.9 million for the
half-year, providing funding for all working capital requirements.
Major payments during the period included last year's final
dividend ($5.9 million) and the deposit on the proposed SP Telemedia
transaction.
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Revenue growth in the second half will be driven by the group's
continued push of new total service fixed-line voice and Internet and
mobile services to existing and new customers through both direct and
dealer channels.
This will be assisted by the recent launch of ADSL broadband
services and the increased bundling options now offered by the group.
Profit improvements will flow from the migration of the digiPlus
base to total service, continued attention to churn reduction and the
cross-selling of services to the B Digital mobile customer base.
Managing director Mr Peter George said, "the group is on track
to pursue its vision of becoming a major customer-focused, full-service
telco.
"The company has performed creditably in a very competitive
marketplace over the past six months and the proposed transaction with
SP Telemedia provides a unique opportunity to pursue growth from new
sources in the future.
"In the longer term, ownership of infrastructure assets will
reduce our exposure to the vagaries of the wholesale capacity market and
positions the company well for the advent of VOIP services."
There will be no interim dividend.
The result was announced after the market closed.
Shares in B Digital fell 4c to 52c today.
ENDS
BBB
b digital limited
