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Company Information

Company at a Glance

Industry:
Diversified Telecommunication Services
Fiscal Year-End:
Jun 10

Company Overview

IiNet (IIN) provides dial-up and broadband internet and phone services in Australia. In addition to providing internet services to retail clients, IIN's subsidiary 'Chime' provides wholesale telephony and data services to corporate clients and ISPs. IIN's 'Jiva' division provides application hosting services for web designers and ISPs with solutions that enable the automated deployment of applications for their clients.

Company History

IIN was founded in WA in 1993. The business expanded rapidly throughout the 1990s, becoming one of the largest ISPs in WA and SA. In 2000, IIN expanded into broadband operations. In 2001, 'Chime' and 'Jiva' were launched. In 2003 and 2004, the company expanded its customer base through numerous acquisitions, including Ihug and Froggy. The company acquired Internet service business, OzEmail in February 2005.

Industries Of Operation

IIN operates in the Telecommunications Sector, providing internet services for retail and corporate clients throughout Australia and New Zealand.

Differentiating Factor

iiNet was the first Australian company to provide a large-scale, premium-grade Voice Over Internet Protocol service. The company places a large emphasis on the delivery of excellent customer service and has established virtual call centres to offer 24/7 customer service and support.

Major Customers & Competitors

IIN competes with various dial-up and broadband ISPs, including Telstra, Optus and OzEmail. IIN has a diverse customer base, including more than 200,000 households. As a phone services provider, IIN would also compete with smaller phone carriers such as Primus and AAPT. IIN has both retail and business customers.

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Market Statistics

Market Cap ($M):
422.3
Equiv. Shares (M):
151.1
% All Ords:
0.03
12Mth Range ($):
1.67 - 3.00
Turnover ($M pa):
195.7
Index:
n/a
Sector:
Telecommunication Services
Industry Group:
Telecommunication Services
Industry:
Diversified Telecommunication Services
Sub Industry:
Integrated Telecommunication Services

Last 5 Market Sensitive Announcements

Date
Announcment
30-Jul-10 11:48
FY10 Pre Results Announcement
30-Jul-10 11:48
Acquisition Announcement
29-Jul-10 10:04
Trading Halt
12-Apr-10 11:10
iiNet Gets Set to Play FetchTV
06-Apr-10 12:55
Market Briefing - CEO and CFO on Strategic Outlook

Calendar Of Events

Date
Event
21-Apr-10
Dividend Date Payable for Half Yearly Result (3c 100% franked)
19-Mar-10
Dividend Record Date for Half Yearly Result (3c 100% franked)
15-Mar-10
Dividend Ex-Dividend Date for Half Yearly Result (3c 100% franked)
02-Oct-09
Dividend Date Payable for Final Year Result (5c 100% franked)
11-Sep-09
Dividend Record Date for Final Year Result (5c 100% franked)

Directors

Name
Position
M Malone
Managing Director
P James
Director
Mr A L Ferguson
Non-Executive Director
P Broad
Non-Executive Director
A Grist
Director
D Grant
Non-Executive Director
M Smith
Non-Executive Director

Management

Name
Position
M Malone
Managing Director
S Fewster
CFO

Substantial Shareholders

Name
% Holding
Futuris Corp.
22.4
Amcom
22.4
Perth Internet
20.0
TVG Consolidation Holdings
17.4
17.4
Phase 3 Pty Ltd
5.7
Westoz Funds Management
5.1
Eley Griffiths Group
5.0

Consensus Recommendation Summary


0
0
1
3
2
Sell Under Perf. Hold Out Perf. Buy

Number of Brokers in Recommendation Summary: 6

Consensus Earnings

FY10 FY11
Consensus EPS1 (c) 20.3 26.6
EPS Growth (%)   31.4
P/E Ratio (x) 13.7 10.4
P/E Rel. All Ords (x) 1.23 n/a
P/E Rel. Sector (x) 1.04 n/a
Number of Brokers in Earnings Survey: 6 6

1. Consensus EPS is generally "reported EPS" but will vary as to whether it is on a pre or post preference earnings basis. This number is not always on the same basis as the Aegis EPS.

Historical Forecast Earnings And Recommendations

Consensus Recommendations

Consensus information provided by Reuters.

Consensus EPS Forecasts 1

1. Consensus EPS is generally "reported EPS" but will vary as to whether it is on a pre or post preference earnings basis. This number is not always on the same basis as the Aegis EPS.

Peer Recommendation Comparison

  P/E (x) EPS Chg (%) Dividend Yield (%) MktCap ($M) Price ($) Consensus Rec
  09A 09A 09A    
Iinet 10.2 9.6 4.6 422.3 2.78 Out Perf.
Customers 46.9 n/a 0.0 368.6 2.72 Out Perf.
Melbourne IT 8.3 3.3 8.5 168.7 2.12 Out Perf.
Webfirm Group (2.0) (49.1) 0.0 65.0 0.15 none
Praemium (2.0) (9.5) 0.0 33.4 0.16 Hold

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