Amcom Telecommunications has reported half-year net profit of $10 million, a 20 per cent increase from the previous corresponding period on the back of strong demand for data network access from business and government.
It is the 10th year of 20 per cent profit growth for the Perth-based provider of data network access, cloud solutions and managed services. The company is capitalising on the growing data demand from the corporate and government sectors.
‘‘The key driver there is date growth,’’ said Amcom’s chief executive Stein Clive, ‘‘ most large businesses are highly dependent on date networks, connecting to the internet and other offices to drive their information technology across these networks.’’
Cisco estimates business data network traffic will double between 2011 and 2016, growing at 19 per cent a year.
Major telcos such as Telstra and Optus are also moving aggressively into this area of providing date services for enterprise and government. Amcom has a relatively strong position in Perth, Adelaide and Darwin where it account for 5 to 8 per cent of market share.
However, Amcom has only about 1 per cent of market share nationally. Mr Stein said he didn’t expect the NBN project to impact on his business as Amcom was focused on different market segment than the NBN.
Mr Stein said another key area of focus for the company was ‘‘date storage’’ and he expected this area to grow 50 folds between 2010 and 2020. Companies are increasingly offloading their date storage work to third party managed services to save cost and space.
When asked about whether Amcom could be a takeover target when the telco industry was going through rapid consolidation. Mr Stein said ‘‘we are an attractive business with quality assets. We are a listed company and are obliged to take any offer seriously.’’