Macquarie Telecom result boosted by hosting

Stuart Corner
Thursday, 23 February 2012 12:12

IT Industry - Listed Tech

Macquarie Telecom (ASX: MAQ), has lifted profits for the half year ending 31 December 2011 by 13.8 percent from the previous corresponding period to $11.1m and "a record EBITDA result" of $21.1m on revenues of $112.2m, down slightly on the previous corresponding period.

Chairman Robert Kaye said: "Macquarie Telecom's hosting business continued its strong revenue performance, growing by 13.4 percent when compared to the previous corresponding period, contributing $29.6m, or 26 percent of total service revenue." The hosting business recorded EBITDA of $7.7m, in line with the previous corresponding period.

Macquarie Telecom's telco (data, voice and mobile) business produce $82.5m in revenue and EBITDA of $16.5m up 4.5 percent on the previous corresponding period, despite an 8.0 percent fall in revenue. The company said voice revenues had been hit by heightened price competition and fixed to mobile and data substitution, while mobile revenues had suffered as a result of Vodafone's network issues in FY11.

"EBITDA profit for the full year is trending towards the upper end of previously issued guidance of between $36m and $38m...[which] includes the impact of establishment costs of approximately $6.0massociated with Intellicentre 2 and cloud computing," the company said.

Macquarie Telecom remains well cashed up with $47.7m in cash and cash equivalents, and says it has a $30m working capital facility to support strategic growth opportunities.