Tuesday, 23 August 2005 05:15

Melbourne IT posts profit and revenue increases for half year


Web solutions provider, Melbourne IT (ASX:MLB), reported strong revenue and profit growth for the 6 months end 30 June 2005.

Revenue was up 20.4% to $35.10 million compared to the same period in 2004 while net profit after tax increased 19.5% to $2.18 million. The company announced an interim dividend of 3.0 cents fully franked based on the results.

'Our half year results demonstrate the company's ability to deliver consistent performance and diversify our revenue and earnings,' said Theo Hnarakis, managing director. 'Our continuing focus is on ensuring the sustainability of the company's future performance and delivering shareholders with a solid return in terms of both capital growth and yield. We have again declared an increased interim dividend that is fully franked.'

Hnarakis said that Melbourne IT's key indicators: revenue, profit, operating cash, number of customers and number of domain names under management had all performed strongly in the half.

'We have also made significant steps towards achieving two of our key strategic goals: diversification of the Melbourne IT offering, and increasing the Average Transactional Value (ATV) per customer.' Hnarakis also emphasised the significant increase in revenues from sources other than domain names.

'In June 2004, only 4.9% of our revenues were derived from sources other than domain names,' Hnarakis said. 'For the half to 30 June 2005, that percentage has trebled, with 14.3% of our total revenue now coming from other Melbourne IT products and services.'

Melbourne IT's total customer numbers increased by 9% from 211,000 customers in June 2004 to 230,000 in June 2005, according to the company.

Melbourne IT also increased its total number of domain names under management.

'Our total of 3.26 million names under management reinforces the fact that we have an excellent annuity business giving us a solid platform for future growth,' Hnarakis said. 'Between June 2004 and June 2005, the number of names under management has increased by a total of 30.5%, a figure which places us in the list of top five global registrars.'

Hnarakis said that Melbourne IT continued to focus on tight cost controls and diversification of its service offering with the aim of adding value to every existing or new customer. He said that with its healthy cash reserves, the company was in a very strong position to continue its investigation of possible acquisitions.

'Looking to the second half of the financial year, Melbourne IT expects continued improvement in revenue and profit which will give the Company its sixth half of profit growth in a row,' Hnarakis said.

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Stan Beer co-founded iTWire in 2005. With 35 plus years of experience working in IT and Australian technology media, Beer has published articles in most of the IT publications that have mattered, including the AFR, The Australian, SMH, The Age, as well as a multitude of trade publications.

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