Boost for telco owner

M2 Telecommunications reported a net profit of $43.8 million in the 2013 financial year, an increase from $33 million the previous year — a full-year profit rise of about 33%.

M2 Telecommunications is the owner of the Primus and Dodo telco businesses, according to the company update in the article.

The boost in M2’s profit was helped by revenue from its purchases: Dodo and Eftel (acquired in May) and Primus (acquired in 2012), which contributed to stronger overall earnings.

The article states M2 bought Dodo and Eftel in May and acquired Primus in 2012.

A 33% increase in full-year profit suggests M2 experienced significant earnings growth over the year — partly driven by recent acquisitions — which everyday investors may view as a sign of positive operational or revenue momentum to investigate further.

Yes. The article says M2 expects further growth in the year ahead following the stronger 2013 financial result.

M2’s net profit rose from $33 million in the prior year to $43.8 million in the 2013 financial year — an increase of $10.8 million.

Everyday investors should look at how the acquired businesses (Dodo, Eftel, Primus) are being integrated, whether revenue gains are sustainable, and M2’s outlook for the coming year — the article highlights acquisitions and an expectation of further growth as key factors.