Vocus profit tripled ahead of M2 merger

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Vocus profit tripled ahead of M2 merger

Vocus has reported explosive growth for the half-year in its final financial report before merging with M2.

Revenue was up 181 percent to $176.3 million for the six-month period ending 31 December. Underlying net profit more than tripled to $27.4 million.

Vocus said the results were achieved organically, as well as through the acquisition of Amcom.

Fibre and ethernet remained the biggest earner for Vocus with revenue growing 218 percent to $80.3 million. Vocus said its fibre network has expanded to connect to over 3600 buildings in Australia.

Vocus’ other business divisions also continued to grow, which included internet revenue of $41.7 million, data centre revenue of $24.5 million, and voice revenue of $16.4 million.

The merger with M2 was not completed until this month, so Vocus’ results were reported separately. The merger resulted in a telco giant with a market capitalisation of around $3 billion, rebranded as Vocus.

M2 brands Dodo, Engin, Commander and iPrimus predominately cover residential and small business, while Vocus and Amcom focus on enterprise and government clients.

M2’s revenue for the half-year was up 29 percent to $707.4 million during the same six-month period ending 31 December. Underlying net profit was also up 17 percent to $55.1 million.

Consumer revenue was up 33 percent underpinned by the acquisition of New Zealand’s third-largest telco CallPlus for $245 million in April.

M2 boss Geoff Horth was appointed chief executive of the combined company, with former Vocus chief executive James Spenceley moving into an executive director role.

Commenting on the results, Horth said: “The interim results are particularly pleasing given that transactional activity can often distract from business operations. I would like to thank both teams who remained focused on executing on our strategies during this busy time to deliver returns to shareholders.”

Vocus shares were up 33 cents to $7.32 at time of writing.

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