Melbourne IT expects 2009 results will surpass 2008
24 Feb 2009 12:50 PM
MELBOURNE, Feb 24 AAP - Domain name manager and online services provider Melbourne IT Ltd expects its financial performance in fiscal 2009 will be better than in 2008 despite challenging market conditions, after posting a 17 per cent annual profit rise.
Melbourne IT on Tuesday reported annual net profit for 2008 of $16.2 million, up 17 per cent on the prior year.
The result was boosted by the contribution from VeriSign Digital Brand Management Services (DBMS), which Melbourne IT acquired in May 2008, and Melbourne IT's search engine marketing joint venture with Fairfax Digital, Advantate.
"We have had an encouraging start to the year, and we expect to outperform our 2008 result in 2009, delivering our seventh consecutive year of profitable growth," Melbourne IT chief executive Theo Hnarakis said.
"2009 will benefit from continued growth in our divisions, more favourable exchange rates, a full year of DBMS and a reduction of the integration costs for DBMS and cost control initiatives."
Melbourne IT said there had been evidence of a slowdown in all of the company's divisions in the final quarter of 2008.
Challenges ahead included contracting IT budgets for corporates; small businesses suffering distress; continued pricing pressure; the commoditisation of domain names; and further volatility in exchange rates.
"Despite the global economic situation, we believe there are significant growth opportunities for Melbourne IT, including increasing demand for outsourcing, software as a service and virtualisation products," Mr Hnarakis said.
Revenue for the 12 months to December 31 rose 21 per cent to $186.2 million.
The company declared a final dividend of eight cents per share, compared to seven cents in the prior corresponding period. The total dividend for the year was 15 cents, compared to 13 cents in 2007.
Melbourne IT shares were 11.5 cents higher at $1.81 at 1237 AEDT today.
