Mitchell Bingemann | August 18, 2008
THE success of its naked DSL broadband offering has resulted in iiNet's $17.8 million profit after tax for the 2008 financial year.
Michael Malone, managing director of Australia's third-largest internet service provider, said “unexpected” customer growth in iiNet's naked DSL offering drove revenue up 9 per cent to $251.2 million.
Since launching its naked DSL offering in December last year, iiNet has accumulated more than 30,000 naked DSL customers at a growth rate of more than 1000 customers a month.
“Naked (DSL) has been a runaway success for us,” Mr Malone said. “It’s been the major driver for us in terms of growth and has far exceeded what we expected.
“It’s a great product from our point of view because it’s very difficult for the large carriers to respond to it because it directly affects their PTSN revenues.”
As at June 2008, iiNet had 373,482 DSL broadband subscribers, including more than 140,000 it picked up with its recent acquisition of Perth-based ISP Westnet. In total iiNet now has 479,163 internet subscribers including dial-up and satellite customers.
The company expects to lift its revenue to over $400 million over the next financial year on the back of more customer growth and as it consolidates Westnet as the regional arm of its business.
“Westnet will continue to operate as an independent business. With the acquisition now complete we expect it achieve $2.5 million in synergies over the next financial year,” Mr Malone said.