Pacific Internet (PCNTF) has reported its sixteenth consecutive quarter of net income for the period ended December 31, 2005.
Fourth quarter net income was US$2.6 million while revenues were US$27.3 million. Net income for the full year was US$6.5 million on revenues of US$102.5 million.
The company also continued its growth in the corporate business with a 32.1% year-on-year revenue growth in the fourth quarter and 15.5% for the full year.
Revenues for the fourth quarter increased 6.8% to US$27.3 million, compared to US$25.6 million a year ago. Quarter-on-quarter, revenues grew by 9.6%. Full year revenues improved 0.4% to US$102.5 million.
The company's corporate business revenue grew to US$69.5 million in 2005, up 15.5% from 2004. This contributed 67.8% of total annual revenues, compared to 59.0% in 2004.
In terms of products, broadband access remained the key revenue driver for the company in 2005, accounting for 49.7% of its total revenues.
Gross margin for 2005 dropped from 55.1% to 52.9% primarily due to lower average revenue per user (ARPU) arising from competitive pricing pressure, and the lower-margin voice revenue from T3 Communications in Australia. The Group will continue to enhance operational efficiencies as part of its cost management measures.
The company's cash position remained strong with cash and bank balances of US$35.8 million. Cash generated by operating activities for 2005 was US$10.5 million, of which US$9.6 million was used in investing activities, primarily for the acquisition of fixed assets and intangible assets. Another US$53,000 was generated from financing activities. Net cash surplus as at December 31, 2005, was US$1.0 million.