iiNet Can Thank The NBN For Its $1 Billion In Revenue

Paying attention to potential customers on Australia's under-construction National Broadband Network is paying off for Australia's third-largest ISP. A reasonable chunk of iiNet's just-announced $1 billion in revenue for the last financial year comes from its 65,000 NBN and fibre customers -- with almost a quarter of the entire NBN market to itself.

Image credit: iiNet

iiNet has 26 per cent of the share of NBN-connected greenfields premises and 19 per cent of existing suburban connections, with its approximately 40,000 customers predominantly on fibre to the premises (78 per cent), with satellite (16 per cent) and fixed wireless (6 per cent) making a smaller share.

That NBN and fibre share is doing especially well for the company, with over half of the customer base new to iiNet and with over 70 per cent of customers skipping the 12Mbps entry-level tier for a 25, 50 or 100Mbps plan. New CEO David Buckingham is upbeat about the fledgling network: "Our proactive approach to the NBN roll out continues to pay dividends."

The just-passed financial year was the first where iiNet clocked over $1 billion in revenue, just scraping over at $1.006 billion and with after-tax profit of nearly $66 million. Interestingly, while iiNet generally has a reputation as a company for households and personal users, 20 per cent of its revenue ($204 million) comes from businesses. [iiNet]

Not only was iiNet the first telecommunications company to be ready to operate in an NBN world, we have quickly become the largest provider of telecommunications services over the NBN with over 40,000 customers. As you would know, there have been some changes to the NBN with a change of Federal government, yet the current plan of using a mix of existing and new technologies continues to offer significant opportunities for iiNet’s customers. -- iiNet blog