1. Most Discussed
  2. Gainers & Losers
AMM $2.60

Even in this market this has to be worth something

  1. Redbeard

    119 Posts.

    What's a company got to do to increase its share price other than rob a bank? - Ok so the Nasdaq dropped and the Dow looks like dropping further. Is'nt a profit a profit!

    (I only own a small holding - Interested in comments)


    HOMEX - Perth


    Amcom Telecommunications Limited (ASX: AMM) announces today that its
    core broadband business has generated revenues of $5.01 million for
    the June 2002 half, an increase of 23% over the preceding December
    2001 half figure of $4.08 million. The revenue for the June half
    represents an increase of 57% over the previous corresponding (June
    2001) half figure of $3.19 million.

    Management is confident that previously forecast figures of EBITDA
    and earnings released in April 2002 will now be exceeded for the
    financial year 2002.

    Amcom Chairman Mr. Tony Grist said, "Amcom management has revised
    upwards its internal earnings forecasts and now confidently can
    predict a maiden Net Profit after Tax for financial year 2003".

    Total group revenues for the June half were $5.7 million, including
    $0.7 million in non-core revenues. The broadband revenue figure of
    $5.01 million included $1.2 million contribution from Rescue Group.

    Group broadband and related revenue by half years, excluding the
    non-core cabling and IP1 businesses are as follows:

    ENDING ($)

    Broadband $1,497,141 $2,020,877 $2,571,692 $3251883 $3,860,627
    Revenue plus

    Rescue Group N/a* $162,645 $613,464 $826,682 $1,152,293

    Total Core $1,497,141 $2,183,522 $3,185,156 $4,078,565 $5,012,920

    Table 1: Total broadband revenue from core-businesses half on half
    NB1. * Rescue Group acquired in September 2000

    Amcom June quarter results were also strong with the core broadband
    business achieving an increase of 9% in revenues for the June 2002
    quarter over the preceding March quarter. The revenues for the June
    quarter represent an increase of 129% over the previous corresponding
    period (June 2001 quarter) broadband sales.

    Amcom management has now completed its rationalisation of core and
    non-core business including the sell down of IP1 (Perth to Melbourne
    long haul business) and the discontinuation of the project-cabling
    group. Amcom is now a passive 26% investor in the strategic and fully
    funded IP1 project. IP1 is now operational Melbourne to Adelaide,
    with balance of the build to Perth expected to be completed by early

    This is reflected in improved operating efficiencies and flattening
    of overheads. Combined with growing sales this has led to significant
    improvement in the EBITDA margins half on half. Core business EBITDA
    grew from $172,000 or 4% of revenue for the December half to $862,000
    or 17% of revenue for the June 2002 half. This represents a core
    business EBITDA result estimate for the year of $1,033,000 from a
    group total estimated result of $1,269,000 for FY02.

    Amcom Group CEO Mr Eddy Lee said, "These results are testament to
    our business model and our strong belief that the demand for
    broadband solutions is growing significantly in the niche geographic
    markets where our networks are located. It would appear that our
    customer acquisition strategies put in place 6 months ago are now
    paying dividends".

    "With a current market penetration of less than 2% and a network
    reach covering 80% of business houses in Perth there is tremendous
    room for growth in market share," Mr Lee added.

    Released by:
    Greg Evans
    [email protected]
    +61 8 9226 5099

Before making any financial decisions based on what you read, always consult an advisor or expert.

The HotCopper website is operated by Report Card Pty Ltd. Any information posted on the website has been prepared without taking into account your objectives, financial situation or needs and as such, you should before acting on the information or advice, consider the appropriateness of the information or advice in relation to your objectives, financial situation or needs. Please be aware that any information posted on this site should not be considered to be financial product advice.

From time to time comments aimed at manipulating other investors may appear on these forums. Posters may post overly optimistic or pessimistic comments on particular stocks, in an attempt to influence other investors. It is not possible for management to moderate all posts so some misleading and inaccurate posts may still appear on these forums. If you do have serious concerns with a post or posts you should report a Terms of Use Violation (TOU) on the link above. Unless specifically stated persons posting on this site are NOT investment advisors and do NOT hold the necessary licence, or have any formal training, to give investment advice.


Thank you for visiting HotCopper

We have detected that you are running ad blocking software.

HotCopper relies on revenue generated from advertisers. Kindly disable your ad blocking software to return to the HotCopper website.

I understand, I have disabled my ad blocker. Let me in!

Need help? Click here for support.