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Hosted services drive earnings upgrade

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Listed carrier Macquarie Telecom has added $5 million to its earnings forecast for the year ended December 2010, attributing the upswing to the performance of its hosted services division.

In an announcement issued to the Australian Stock Exchange yesterday, the company said its half-year earnings are likely to be around $20 million, compared to previous guidance that indicated earnings of between $15 and $17 million.

Growing “selective outsourcing” was adding to the company’s high-margin hosting business, according to CEO David Tudehope. He noted that external factors such as accelerating Internet speeds was making hosted services more attractive to a wider range of Macquarie’s business customer base.

Tudehope also expressed an optimistic view of the future, saying that the “emergence of cloud computing … will increase this trend”.

As reported last week, Macquarie Telecom recently launched a new cloud-based service. ®

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