VoIP provider MyNetFone reports $2m net profit

Stuart Corner
Wednesday, 25 August 2010 12:06

IT Industry - Listed Tech

VoIP service provider MyNetFone (ASX: MNF) has reported a net profit after tax of $1.97m for FY10 on record revenues of $12.1m.

EBITDA was $2.03m, and the company declared a final, unfranked, dividend of 0.75 cents per share. Revenue was up 23.6 percent, EBITDA up 771 percent and NPAT grew tenfold from the $170,386 last year. MyNetFone had 83,00 customers at the end of June, a 12.2 percent increase on the number a year ago.

Operating expenses grew by only 6.6 percent, the result MyNetFone says ,of cost management and efficiency gains. The company finished the year with almost $2m in cash, up from $1.15m in 2009. The growth was achieved with even less marketing expenditure ($372k) than last year ($469k).

The company said the result had been achieved "through organic growth of customer number and service usage of MyNetFone's VoIP, broadband Internet and a range of enhanced services by residential and business customers." It expects to maintain the growth especially in the SME market.

"The virtual (hosted) PBX service continues to gain popularity with business customers while SIP trunking service is gaining traction with more new generation IP-PBX's coming onto the market," the company said. "As a result, MyNetFone is now a creditable and reputable brand of VoIP and broadband Internet service provider in the SOHO & business market."

Since the introduction of naked ADSL2+ service MyNetFone has been offering bundled VoIP and broadband Internet services with one single bill and plans to offer "number portability service with improved and streamlined processes in order to deliver efficient customer service and reduce delivery lead time."

The company flagged plans for this earlier in the year and director, Rene Sugo, told iTWire at the time that the uptake of VoIP, especially in the business market, was being held back significantly by the difficulty VoIP providers had in porting customers' telephone numbers - thus enabling them to use their existing numbers with their new VoIP service.

For 'category C' customers - business with large blocks of numbers and complex arrangements the process could take up to eight weeks according to Sugo, and lacks predictability.

MyNetFone says that, in order to meet the need of different requirements of residential and business customers, it "undertook the challenges to develop and implement internal systems and processes that deliver high standards of customer service efficiently in accordance with industry's best practice."

MyNetFone relies on two related, privately owned companies, Symbio Networks and Symbio Wholesale for the provision of platform resources, technical support, traffic minutes and customer devices and these two companies received the bulk of MyNetFone's outgoings for the year, in excess of $6m.