Business Description:
Melbourne IT Limited (MLB) is an online solutions provider, focusing on internet domain name services, critical web hosting, online brand protection and promotion, video content delivery, managed IT services and more across five divisions, namely, Digital Brand Services, For The Record, Global Partner Solutions, SMB eBusiness Solutions and Enterprise Services.

Strategy Analysis:
Rising broadband penetration and higher investment by SMEs into e-commerce should drive greater demand for integrated online solutions. Revenues are recurring with historical renewal rates averaging above 60%, but trending lower as smaller players compete aggressively on price. Success depends on MLB´s ability to maintain blue-chip clients, while leveraging off its large retail base to cross-sell new products. Melbourne IT reported NPAT down 29% to $4.95m for the half-year ended 30 June 2011. Revenues from ordinary activities were $87.60m, down 11% from the same period last year. Diluted EPS was 6.09 cents compared to 8.79 cents last year. Net operating cash flow was $8.36m compared to $11.54m last year. The interim dividend declared was 7.0 cents compared with 7.0 cents last year.