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IINET LIMITED (IIN)

IINET LIMITED (IIN)

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General Information
Company Name: iiNET Limited
Stock Code: IIN
Website: www.iinet.net.au
GICS Sub-Industry: Alternative Carriers
Market Cap ($M): 480
Equiv. Shares (M): 161

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 2.980 $ 2.990 $ 3.010 $ 2.960 $ 2.960 49,420 $ 0.020  0.676 %

Current Broker Consensus Recommendation more
Recommendation: Hold
Recommendation Date: 14th Mar 2012
12 Month Target Price (average): $3.367
Brokers Surveyed: 6

Company Overview

Business Description:
iNet Limited (IIN) is a DSL Internet Service Provider (ISP) supporting 1.7 million broadband, telephony, mobile and Internet Protocol TV (IPTV) services to a wide range of residential, regional and corporate customers across Australia.

Strategy Analysis:
IIN will continue its commitment to ADSL broadband, supported by the installation of its own DSLAMs, which provides a lower cost base than its competitors. Despite the National Broadband Network, rollout of its own DSLAMs will continue on a selective basis. Other strategies include: Brand launch campaigns for brand awareness, customer service and additional products such as VoIP, internet package and IPTV. iiNET reported NPAT down 3% to $33.37m for the year ended 30 June 2011. Revenues from ordinary activities were $699.09m, up 48% from the same period last year. Diluted EPS was 21.9 cents compared to 22.7 cents last year. Net operating cash flow was $95.99m compared to $62.46m last year. The final dividend declared was 7 cents, taking the full year dividend to 12 cents compared with 9 cents last year.


Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2013  F 60.0 37.4 28.2 8.0 17.0 5.7 100.0
2012  F 45.6 29.2 13.7 10.2 14.0 4.7 100.0
2011  A 39.1 25.7 12.7 10.7 12.0 4.4 100.0
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2011 A 2012 F 2013 F 2011 A 2012 F 2013 F 2011 A 2012 F 2013 F
iiNET (IIN) $476 M 0.1273 0.0457 0.2459 11.5670 11.0613 8.8782 0.0405 0.0463 0.0554

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
IIN 0.20 11.2 1.87 0.79 0.65
Market 0.80 12.1 1.33 1.35 1.68
Sector 0.20 12.3 2.34 0.95 1.69

Directors
Name Position Start Date
Mr Michael Martin Malone Managing Director 14 March 1995
Mr Michael K Smith Non-Executive Chairman 19 September 2007
Mr Peter Richard James Non-Executive Director 28 November 2003
Mr Paul Anthony Broad Non-Executive Director 07 June 2006
Mr David A.G. Grant Non-Executive Director 12 October 2006
Ms Louise McCann Non-Executive Director 14 April 2011

Management
Name Position
Maryna Pienaar Chief Customer Officer
David Buckingham Chief Finance Officer,Company Secretary
Steve Dalby Chief Regulatory Officer
Greg Bader Chief Technology Officer

Substantial Shareholders
Holding Name
15,389,054 (10.11%) Citicorp Nominees Pty Limited
18,012,162 (11.84%) Perth Internet Pty Ltd
13,864,664 (9.11%) J P Morgan Nominees Australia Limited
19,125,098 (12.57%) National Nominees Limited
15,000,000 (9.86%) Zero Nominees Pty Ltd

Calendar of Events
Date Event
19 February 2013 Report (Interim)
18 September 2012 Report (Annual)
03 September 2012 Report (Prelim)
13 August 2012 Report (Prelim)
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