Macquarie Telecom profits up 20 percent to $17 million

Macquarie Telecom has reported 6 percent revenue growth and a 20 percent after-tax profit for the year ending 30 June 2018.

Revenue for the 2018 financial year was $233.5 million, up from the $220 million reported in the previous financial year, while the company’s net profit after tax was $17 million, compared to $14.2 million last year.

Earnings before interest, tax depreciation, and amortisation (EBITDA) was $47.8 million, up $7.5 million on the previous 12-month period.

The company generated $95.3 million in revenue from its hosting business and $142.3 million from its telecoms business.

MacTel chief executive David Tudehope said the telco’s profitable growth had enabled the company to invest across its business units, including the expansion of its data centre infrastructure.

“Our confidence in the continued growth in demand for cloud underpins our decision to invest $75-80m in the Macquarie Park Data Centre Campus,” he said.

The company also highlighted a $100 million direct wholesale access agreement that it signed with NBN Co in July this year, noting the agreement would enable new telco and data services to Australian businesses in a six-year agreement, including “dedicated, Australian-based NBN service delivery, assurance and support staff for Macquarie customers”.

The company declared a fully franked final dividend of 25cps, but noted it would cease paying dividends beginning from the 2019 financial year as it entered a new phase of investment, further details of which will be provided during the company's AGM in November.

MacTel’s share price was down 91 cents at the time of writing, a 3.8 percent slide on its Wednesday closing price.