AMM 0.00% $2.60 amcom telecommunications limited

making money out west

  1. 736 Posts.
    Making money out west

    The West Australian telecom tiddlers are certainly outdoing some of their east coast competitors. The Perth internet service provider Amcom yesterday posted a 47 per cent rise in half-year net profit to $2.4 million, allowing it to declare a maiden dividend of 0.3c a share, payable on April 24.

    The Futuris-controlled Amcom has a fibre-optic network connecting businesses and government offices in the central business districts of Perth and Adelaide.

    The company's revenue growth in the last half was primarily due to the fibre division's contributions.

    Amcom also has a stake of just over 21 per cent in fellow Perth broadband provider iiNet. Including $2 million in equity-accounted earnings from iiNet, Amcom's profits almost doubled to $4.4 million.

    The ISP also forecast at least a 25 per cent increase in full-year earnings and said it expected that rate of growth to continue in 2009. Shares in Amcom rose 1c to 23c yesterday.

    Perth's larger broadband provider, iiNet, talked up its interest in acquiring medium-sized businesses this week after announcing a 35 per cent lift in half-year profit on Monday.
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