M2 eyes billion-dollar revenues

Aussie telecommunications provider M2 reports revenues could reach the $1 billion mark this financial year, on the back of a record earnings result this week.

Revenue was up 66 percent for the first half of the 2014 financial year to $506 million compared to the same period in 2012, the company's earnings report reveals. The underlying net profit after tax was $43.8 million, up 31.7 percent on the corresponding period.

The result puts the company on track to achieve full year revenue of between $970 million and $1.03 billion, according to M2's earnings announcement.

It's an impressive forecast for a company that was established in 1999 and has since evolved into a player in both the business and consumer markets across fixed line, mobile data and voice.

Since acquiring small business integrator Commander Communications in 1999, M2 has also snaped up several other providers, including more recently Dodo and Eftel.

These expansions continue to reap dividends for M2, with the company trumpeting organic growth in the latest earnings announcement.

While there was a fall in the number of M2's mobile services, overall services were up by 50,000. This includes 39,000 new broadband services, following the acquisition of Dodo and Eftel last year. 

The number of fixed voice services also increased by 23,000, with business segment leads increasing by 113 percent from Q1 to Q2.

The company has two new products for its Commander business. In March M2 will launch an "NBN-ready" hosted Commander Phone for small business starting at $34.95 with no line rental or contract.

M2 will also launch a Commander Electricity offer in March. "We will be the only provider in the market with a telco and energy bundle for small businesses," said CEO Geoff Horth said in an interview about this week's earnings results.

The company's consumer division is its biggest in terms of customers, with 984 services, compared with 346 services for the business division.

Voice services account for the lion's share of M2s services in its business division, followed by mobile and broadband.