ID Home
Melbourne IT Rides The Internet Wave to Riches
by Garry Barker, The Age

THE internet's surging power is reflected in the half-yearly results posted by domain name registry and web services company Melbourne IT.

Revenue in the half-year to June 30 rose 19.5 per cent to $41.9 million. Earnings before interest and tax rose 29.1 per cent to $3.4 million. Net profit was $2.6 million, up 21.8 per cent. It did not include the $5 million realised from the sale of Melbourne IT's share in Neulevel, the international registry for .biz names.

Operating cash was up 58.8 per cent to $5.6 million and cash at the bank rose 54 per cent to $35 million. The board declared a fully franked interim dividend of 3.5¢ a share, an increase over the first-half dividend last year of 16.7 per cent. "All the key performance indicators we set are up by a minimum of 20 per cent," chief executive Theo Hnarakis said. "Everything is growing in the right direction. We are now forecasting for the second half of this year our eighth consecutive half-year of growth." Melbourne IT, originally a University of Melbourne spin-off, now operates globally and is one of the world's leading domain name registries. It draws more than 70 per cent of its revenue from overseas, a share Mr Hnarakis expects will grow. "The path we set three years ago on becoming a web services company is now delivering (solid benefits)," Mr Hnarakis said. "Not only are we still good at selling domain names but we are getting terrific success in areas such as hosting, search engine optimisation and consulting.

"We think there is enormous growth (and) … a lot more growth is to come."