Amcom Telecommunications Limited

Synopsis

Amcom is a second-tier telecommunications carrier that provides fibre, Digital Subscriber Line broadband, data centre, IP voice solutions and internet services to the corporate, wholesale, government and Small and Medium Enterprise markets.

The company is one of the best-placed telcos in the Australian market with excellent prospects for future growth, and remains a well-managed and focused business. It is based in Western Australia. Amcom has constructed over 2,100km of high-speed fibre optic networks in Perth, Darwin, Alice Springs and Adelaide, accessing over 1,300 buildings. The network provides access to around 80% of business premises in these cities. The company has over 40 exchanges on its DSLAM network in Perth, Adelaide and Melbourne that capitalises on its existing fibre network. In mid-2011 it disposed of its 23% stake in iiNet Limited for $12 million.

Earnings growth is expected to continue in 2012 on the back of buoyant market conditions and with company acquisitions including L7 in late 2011. The company has moved into the Cloud IT business with a partnership with Cloud specialist BlueFire. The company in 2011 also secured a $9 million three year contract to deliver Cloud IT services to the University of Western Australia.

In this report we provide an overview of Amcom with analysis provided by BuddeComm. We also include a financial overview of the company with the current and previous financial years in text, tabular and easy-to-read chart style formats.

Companies mentioned

Companies mentioned in this report include – IP Systems, People Telecom, L7, BlueFire, FiberTel, Optus, iiNet, Amnet.

Hot topics and technologies mentioned

Hot topics and technologies mentioned in this report include – Cloud computing, fibre, IP, NBN.

Table of Contents

• 1. Synopsis
• 2. Company information
  • 2.1 Overview
  • 2.2 Fibre division
  • 2.3 Contract with Northern Territory Government
  • 2.4 Amnet division
  • 2.5 Business Services division
• 3. Financial results
  • 3.1 Statistical overview
  • 3.2 Financial results for FY2011
  • 3.3 Financial results for FY2010
• 4. Company analysis
  • 4.1 Areas of growth a key to success
  • 4.2 Independence from others
  • 4.3 National broadband network (NBN)
• 5. Network
  • 5.1 Fibre network overview
  • 5.2 SABRENet agreement
• 6. Alliances and acquisitions
  • 6.1 Amcom acquires IP Systems (IPS)
  • 6.2 Acquires L7 IT group
• 7. Company history
  • 7.1 Brief timeline – 1988 - 2011
• 8. Related reports

• Table 1 – Amcom – operating revenue and annual change – 2000 - 2011
• Table 2 – Amcom – key financial indicators – 2010 - 2011
• Table 3 – Amcom – revenue by service division – 2004 - 2011

• Chart 1 – Overview of Amcom – key financial indicators – 2010 - 2011
• Chart 2 – Overview of Amcom – revenue by service division – 2004 - 2011
• Chart 3 – Long term share trending Amcom – 2003 - 2011
• Chart 4 – Share price trending Amcom – 2011

• Exhibit 1 – Amcom Telecommunications Limited (Amcom) at a glance
• Exhibit 2 – Amcom products and services