M2 Telecommunications

Synopsis

Established in 1999 and listed on the Australian Securities Exchange in 2004, M2 Telecommunications Group Limited is Australia’s largest network independent provider of fixed-line, mobile and data telecommunications services. The company also provides fixed-line and 3G mobile services in New Zealand.

M2 Telecommunications Group Limited has shown consistent growth over the last eight years through organic growth and strategic acquisitions, and in 2009 acquired People Telecom Ltd and the business assets of Commander Communications, both at bargain basement prices.

In 2010 the company completed the acquisition of selected business assets of Clever Communications Australia Limited and Bell Networks Voice and Data Pty Limited. While in 2011 the company is continuing the acquisition path with purchases of Clear Telecoms that added subscriber numbers, revenue and used debt to finance the purchase and then purchased the subscribers and assets of AUSTAR Mobile in March 2011 from the pay TV satellite provider.

In this report we provide an overview of M2 with financial and operational information on the company, with analysis in several formats including charts and tables.

Companies Included:

AUSTAR United Communications, Clear Telecoms, Bell Networks Voice & Data Pty Ltd, Clever Communications, People Telecom, Commander Communications, Unitel Australia, Orion Telecom, Tenex Communications, Wholesale Communications.

Table of Contents

• 1. Synopsis
• 2. Company information
• 3. Company Analysis – September 2011
• 4. Financial results
  • 4.1 Overview
  • 4.2 Financial statistics
• 5. Services
  • 5.1 Fixed-line voice
  • 5.2 Mobile
  • 5.3 Internet
  • 5.4 Brands
• 6. Organisation
  • 6.1 Overview
  • 6.2 Business Units – M2 Telecom (retail) and M2 Wholesale
  • 6.3 Acquisition of AUSTAR Mobile – 2011
  • 6.4 Acquisition of Clear Telecoms (M2 Clear) – 2011
  • 6.5 Acquisition of Bell Networks – 2010
  • 6.6 Acquisition of Clever Communications – 2010
  • 6.7 Acquisition of People telecom – 2009
  • 6.8 Acquisition of Commander assets – 2009
  • 6.9 Acquisition of Unitel Australia – 2008
  • 6.10 Acquisition of Orion Telecom – 2007
  • 6.11 Acquisition of Tenex Communications – 2007
  • 6.12 Acquisition of Wholesale Communications – 2007
• 7. Related reports

• Table 1 – M2 key financial statistics overview – 2010 - 2011
• Table 2 – M2 key financial statistics overview – 2007 - 2011
• Table 3 – M2 revenue (historical) – 2004 - 2006

• Chart 1 – M2 revenue and annual change – 2007 - 2011
• Chart 2 – M2 share price trending – 2007 – 2011
• Chart 3 - M2 share price trending - 2011
• Chart 4 – M2 key key financial statistics overview – 2007 - 2011

• Exhibit 1 – M2 Telecommunications Group Limited (M2) at a glance – 2011
• Exhibit 2 – M2 services by brand – 2011