Melbourne IT reports $7.1m profit

Melbourne IT reported a profit of $7.1 million for its half year ending June 30, following the sale of its Neulevel business, netting it a gain of $4.5 million for the period.

Profit excluding Neulevel was $2.6 million, up 21.8 percent on the same period last year.

The company’s direct sales division reported a 10 percent jump in revenue to $12.6 million, while its reseller business reported a 27.2 percent jump in revenue to $22 million.

The reseller division had 3.79 million domain names under management, the company said. Its corporate brand services division reported revenue of $6.6 million with a total of 350 customers.

Shareholders of hosting company WebCentral (WCG) earlier this week approved Melbourne IT’s $64 million acquisition of WCG with this acquisition expected to be completed by September 11.

During the six months to June 30, Melbourne IT said it expensed over $250,000 in due diligence costs relating to the WCG acquisition.

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