Business Description:
M2 Telecommunications Group Limited (MTU) is a network independent provider of retail and wholesale fixed line, mobile and data telecommunications services specifically tailored towards small and medium businesses (SMB) in Australia and New Zealand.

Strategy Analysis:
M2 continues to focus on its two core target markets: Small & Medium Businesses (SMBs) and Telecommunications resellers and Internet Service Providers (ISPs), via our M2 Wholesale division. In respect of our infrastructure strategy, M2 remains 'infrastructure light´, utilising the network infrastructure of (principally) the largest telcos in Australia and New Zealand combined with limited company-owned infrastructure, used to deliver our range of data services. This strategy enables the Company to continue to generate strong cash flows without the requirement for heavy capital investment and also provides us with technological flexibility so as to ensure we continue to provide our customers with products and services which are relevant to their requirements. M2 Telecommunications Group reported NPAT up 72.28% to $27.68m for the year ended 30 June 2011. Revenues from ordinary activities were $426.85m, up 5.11% from last year. Diluted EPS was 22.23 cents compared to 14.1 cents last year. Net operating cash flow was $39.74m compared to $13.31m last year. The final dividend declared was 9 cents, taking the full year dividend to 16 cents compared with 10 cents last year.