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iiNet nears million-customer mark

Profit up, ARPU up, churn down

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Even in the relatively flat fixed broadband market, it seems there’s still room for growth: iiNet, the ISP claiming Australia's number two position in DSL services, managed to add more than 48,000 new customers in the 2010 financial year, taking total services to 960,000 at the end of the year.

Announcing its annual results on Monday, the company also highlighted a focus on keeping churn to a minimum, claiming an average broadband churn rate of just 1.5 percent.

Meanwhile, its strategy of migrating customers from off-net connections (that is, DSL services bought wholesale from Telstra) to its own DSLAM infrastructure, along with continuing growth in naked DSL customers, means the customer has been able to report on-net average revenue per user of nearly $AU56 per month.

Customer migrations should continue well into 2012, as the company continues to integrate acquisitions such as that of AAPT’s residential customer base.

iiNet reported revenue of $AU699 million and EBITDA of $105 million.

However, adoption of its IPTV service has been limited, with only 300 customers to date. The company foreshadowed an expansion of the content available in the package, which costs $AU19.95 or $AU29.95 (depending on the sign-on fee a customer chooses) and is integrated into its BoB consumer hardware. ®

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