Managed hosting and integrated telco provider Macquarie Telecom (ASX:MAQ) has recorded a profit of $29 million for the financial year ended 30 June 2010.
This was an increase of 25 per cent compared to the previous year. Earnings before interest, tax and depreciation (EBITDA) rose to $29 million, from $23.2 million last year.
In a statement to the ASX, chairman, Robert Kaye, said its hosting business was a key growth platform.
“We continue to pursue our strategy of increasing market share in the high growth industry of mission critical hosting," Kaye said.
"In fiscal year 2010 we successfully delivered strong revenue and profit growth from our hosting business, firmly establishing Macquarie Telecom as the recognised leader in delivered managed hosting of mission critical applications for business and government customers in Australia.”
According to Kaye, its telco business consisting of data, voice and mobiles increased profitability during the financial year despite continued revenue decline in the voice business driven by further price competition.
“Our telco business will continue to be a core offering of Macquarie Telecom and the company remains focused on delivering superior customer service through operational and service excellence, and on growing our corporate client base,” he said
In the year ahead the company expects the growth in profitability continue, moderated by ongoing investment in its hosting business.
He also said that Macquarie Telecom exited the year in a strong financial year with $56.3 million in cash and cash equivalents.
“Capital expenditure on customer equipment, network and facility maintenance, and support in fiscal 2011 is expected to be approximately $17 to $18 million, driven by continued strong hosting sales. In addition, further investment will be made in fiscal year 2010 to expand our hosting capacity to support the strong growth in that business,” said Kaye.