M2 delivers 63 percent increase in half yearly reports

The diversified telecommunications services provider claimed its performance in the 6 month period to 31 December 2008 a record half year earnings compared with the previous corresponding period.

In a statement to the ASX, the board said the telco has also delivered growth in A/NZ small enterprise target market as well as its 'Simply Mobiles' online retail business.

Vaughan Bowen managing director and CEO at M2 said it was very pleased to have delivered a strong result for the first half.

"Growth has been particularly solid in our M2 wholesale division and with our M2 Telecom retail arm also growing organically during the period," he said.

"The second half of the year will see Board and management focus on improving processes and systems across the business together with taking the necessary measures to mitigate exposure to risks associated with the slowing economy.

"M2 still has only fractional telco industry market share (less than 1 percent) and as such we remain optimistic about delivering continued growth at both the top and bottom lines in the market segments which we have proven to be able to add value and grow profitably".

The Directors have also declared the M2's 9th consecutive dividend, totaling 2.5c per share (fully franked).

Additional financial, operational and strategic events of note for the period included; operating cash flow increased to $4.7m, cash assets grew and debt was reduced

M2's wholesale division continued to deliver strong organic growth and successfully integrated personnel and customers of Unitel Australia, acquired in February 2008.

While its retail division expanded customer support capabilities within M2's Hobart contact centre.