Telecommunications services provider M2 Telecommunications (ASX: MTU) has reported an increase of 115 percent in revenues in its financial results for the half year ending 31 December 2009.
Delivering significant increases in all key financial metrics compared with the previous corresponding period, M2's revenues hit $188 million and net profit after tax (NPAT) was $8.2 million, an increase of 156 percent.
M2 attributed its growth to the "successful integration of acquisitions" made in 2009. The results were the first to include the full contributions of its acquisition of People Telecom and the business telecoms assets of Commander, completed in April 2009 and June 2009 respectively.
M2's managing director Vaughan Bowen said the results were a testament to the successful efforts of its team in integrating the new businesses.
Incorporating Commander, People Telecom and Southern Cross Telco, M2 sought to "become the pre-eminent provider of telecoms services to small and medium sized businesses," he said.
"The integrations were very much reliant on those people being brought into the fold. We didn't undermine the balance and that set the foundation for the operational infrastructure."
Bowen also said Commander's sales fleet - known as territory-specific franchisees - continued the Commander brand name and have helped double M2's new sales revenue.
"We made them into territory dealerships, but the difference was we now had the ability to impose some expectations across new sales activities. The response has been fantastic."
"They decided to give us go and we doubled the Commander sales volume in seven months," he told CRN.
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