M2 Telecoms reports record profit

Telecommunications services provider M2 Telecommunications Group has reported a record net profit afterwards tax of $27.6m and record EBITDA of $48.3m on earnings that were five percent up, to $426.8m.

The company acquired the customer base of its wholesale customer Edirect in April 2011 and has eliminated a large number of low margin clients that had, through Edirect, contributed $55m to M2 earnings in FY11.

I added that significant acquisitions in FY11 - Clear Telecoms business assets and Austar mobile clients in February 2011 and Edirect in April 2011- had been made late in the financial year and as such had made only modest contributors to FY11 revenues.

M2 described its guidance as being "marked growth by any measure and considerably exceeds the average revenues growth being delivered by the industry at large," and said the guidance targets would be achieved through "a conscious decision to invest more aggressively than in previous years into expanding and unifying [our] sales and marketing channels, to take advantage of what is believed to be a unparalleled opportunity to seize additional share of, in particular, the small and medium sized business market and, thus, strengthen M2's reach and market presence for the medium to long term."

If you are wondering why you need to have a mobile device policy inside your small to medium sized business, the simple answer is that everything has "gone mobile". Software applications have been migrating to mobile versions of themselves with in the extreme predictable levels of regularity, so employees are using their mobile devices as so then as their desktop computers.