Melbourne, Feb 27, 2008 AEST (ABN Newswire) - Diversified telecommunications services provider M2 Telecommunications Group Limited (ASX: MTU) today released its financial results for the half year ending 31 December 2007, delivering a 160% increase in Net Profits After Tax (NPAT) to a record $1.95 million, as compared with the previous corresponding period (pcp).
Earnings Before Interest and Tax (EBIT) for 1H08 was a record $2.75 million, up 187% on the previous year with record first half revenues of $40.75M, up 104% on pcp.
Below is a summary of the highlights of M2's half year to December 31 2007;
- EBIT of $2.75M, as compared with $.96M in the previous year, representing an EBIT increase of 187%.
- NPAT of $1.95M, an increase of 160% from the pcp to a new record high.
- Revenues of $40.75M, as compared with $19.93M last year, an increase of 104%.
- Operating Cash Flow increased to $4.26M as cash assets continued to remain strong.
- Declaration of a fully franked dividend for the half year of $0.02c per share, which is in excess of 70% of NPAT.
- EBIT as a percentage of revenue increased 40% from 4.8% to 6.7%.
- Further expansion of M2's suite of products and services, both in Australia and New Zealand, including third generation ("3G") mobile services, ADSL2+ high speed broadband and wireless data services.
- M2's wholesale division ("M2 Wholesale") experienced rapid organic growth, particularly through supply of wholesale Optus mobile services to other telco's and ISP's.
- Established a foundation mobile network wholesaling alliance with Vodafone in New Zealand, following introduction of NZ mobile number portability in April 2007.
- Successful integration of all customers and business assets of Wholesale Communications Group and Tenex Communications acquired by M2 in May and June 2007 respectively.
- Completion of acquisition of ASX listed Orion Telecommunications Limited (ASX: OTL) in October 2007, incorporating 100% of established telecoms services provider, Southern Cross Telco.
- Launched two targeted online ventures; www.simplymobiles.com.au, a dedicated online mobile phone retailer and Green Mobiles, www.greenmobiles.com.au, Australia's first mobile telecommunications service to directly target climate change.
The substantial expansion in M2's scale, earnings and market presence during the first half of the 2007/8 financial year is expected to continue during the second half of the year through both continued strong organic growth and the impact of M2's acquisition of established wholesale network services company Unitel Australia Pty Ltd from Commander Communications Limited (ASX: CDR) on February 22 2008. Combined, it is expected that material growth in Earnings Per Share will be realised, accompanied by a more than doubling of M2's annual revenues to over $100 million for the full year to June 30 2008.
M2's Group Managing Director / CEO, Vaughan Bowen said of the result; "This first half result is most pleasing and is testament to the hard work and varied skills of all members of our growing team. To have substantially more than doubled our period-on-period performance at a time when we have been focused upon the completion and integration of a number of strategic acquisitions, makes the performance all the more rewarding and positions us well to realise our earnings growth targets for the second half of the financial year".
Contact
Vaughan Bowen
Managing Director / CEO
Tel: (03) 9674 6555
Kellie Dean
Company Secretary
Tel: (03) 9674 6555
| ||
|
