REPORTING SEASON: M2 Group Limited (MTU)
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Figure 1: M2 Group Limited 12 month chart
Telecommunications company M2 Group Limited (MTU) has reported a near 26% increase in first half profit to $30.94 million and flagged it will deliver record revenue for the year.
The company formerly known as M2 Telecommunications saw a 66% increase in first half revenue to a record $506 million, thanks to earnings from its recent acquisitions Dodo and iPrimus.
MTU added 50,000 new services in the period, including 39,000 new broadband contracts.
There was an increase in its fixed voice contracts while MTU lost 25,000 mobile services.
MTU also opened 13 new Dodo Connect Kiosks in the half.
Its energy business, which is a core product at the Dodo Connect Kiosks, added 13,000 contracts in the half.
MTU will launch Dodo electricity in South Australia this month. Its new Commander phone, marketed at small business, will be launched on the 3rd March; along with Commander Energy, aimed at reducing energy and telco costs for small businesses.
MTU has reaffirmed full year guidance and expects profit between $60-70 million.
The company also plans to move away from acquisitions and focus on paying down debt.
An increased fully franked interim dividend of 11.5 cents per share will be paid on 16th April.
MTU shares initially rose on the result and were up 50% in calendar 2013.