Vocus Communications is targeting the consumer market and has its sights on becoming Australia's "most loved telco" after its full-year profit more than trebled in the wake of mergers with M2 Group and Amcom.
Net profit for the 12 months to June 30 rose to $64.1 million from $19.9 million in 2014/15 thanks to the fivefold surge in revenue that followed February's merger with M2 and the July 2015 tie-up with Amcom Telecommunications.
Vocus had previously been focused on corporate customers, but is now aiming for the crowded consumer space as well after acquiring the likes of dodo, iPrimus, CallPlus and Slingshot in the M2 merger.
It sold another 55,000 consumer broadband services during the year, taking its combined businesses' total to 520,000 at the end of June.
"Our ambition is to be the most loved telco," chief executive Geoff Horth said on Tuesday.
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Bundled broadband services accounted for more than half of the 520,000, while a jump in national broadband network users helped the company increase its NBN market share to 6.4 per cent from 5.1 per cent.
Vocus will increase its marketing spend by $6 million to promote its phone and broadband services.
Mr Horth said the company continued to exploit its national fibre network by targeting corporate sales in metropolitan locations around Australia, and expects to grow its sales team by 35 per cent in 2016/17 as part of efforts to build its corporate business.
Vocus is on track to meet its target of $13 million-$15 million in cost cuts resulting from the Amcom merger by June 30, 2017, and hopes to save another $40 million by the end of FY18 through synergies with the old M2 business.
At 1523 AEST, Vocus shares were up 20 cents, or 2.4 per cent, at $8.54.
VOCUS FY16 RESULTS
* Net profit $64.1m from $19.9m
* Revenue $830.8m from $149.8m
* Final dividend up 6.0 cents to 8.0 cents, fully franked
