M2 profits boosted by Commander's Unitel

M2’s group managing director/CEO, Vaughan Bowen, said sales revenues of $109.2 million – up 149 percent on the previous year – were driven by growth in all of M2’s business units.

He claimed M2 was one of the largest network resellers and independent telco wholesalers.

“This result comes after a year of step change within the business in terms of our scale and position within the sector. Having successfully integrated two major acquisitions during the year and added considerably to our existing operations through strong growth,” Bowen said.

Earlier this year M2 purchased Unitel Australia, the network services arm of embattled Commander. Bowen said the Unitel purchase completed M2’s suite of wholesale products, adding local access and fixed line services to its existing mobile voice, data and terrestrial broadband products.

“M2 Wholesale saw revenues jump a remarkable 440 percent to $56.8 million during the period, with Unitel contributing for four months of the period and the remainder of the growth being generated organically,” he said.

However M2’s first acquisition, in October 2007 also helped to contribute to the company’s growth. “The Orion acquisition fuelled growth in M2’s retail business, contributing a 56 percent increase in year-on-year revenues in $51.9 million,” claimed Bowen.

M2’s directors also issued earnings and revenue guidance for 2008/9 financial year, forecasting growth of 40 percent to the top and bottom line, said Bowen.