CallPlus $253m price tag largely goodwill, M2 accounts show
M2 reported a 10% gain in net profit to $A73.7 million on a 9% gain in revenue to $A1.12 billion.
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ASX-listed telecommunications firm M2 Group attributed just a fifth of the $A253 million it paid for local fixed line and broadband services provider CallPlus to identifiable net assets, with the bulk going toward goodwill.
The Melbourne-based company completed the acquisition, including the Slingshot, Orcon, Flip and 2Talk brands, on June 30, assigning $A200.2 million to goodwill, which it said would arise from "expected synergies." CallPlus's identifiable net assets included cash of $A9.9 million and receivables of almost $A17 million, a customer base valued at $A44.5 million, brands valued at $A27.8 million and other intangible assets totalling $A6 million, according to M2's annual financial statements published on the ASX today. M2 also took on a deferred tax liability of $A8.5 million and trade payables totalling $A61.8 million.
Had the acquisition occurred at the start of the year, CallPlus would have contributed annual revenue of $A236.7 million and pre-tax profit of $A11.3 million, M2 said. Transaction costs associated with the CallPlus acquisition were $A10.2 million.
M2 reported a 10% gain in net profit to $A73.7 million on a 9% gain in revenue to $A1.12 billion. The board declared a final dividend of 17Ac per share, payable on October 29 with an October 7 record date. That takes the annual payout to 32c.
The Australian company announced the acquisition in April, saying CallPlus would add $250 million in sales and $45 million in earnings before interest, tax, depreciation and amortisation in 2016.
M2 today said the integration of CallPlus was well under way, with a restructure of the New Zealand business to align it with the Australian parent's consumer, business and wholesale segments, the establishment of a transtasman network to allow information sharing, and refinancing debt facilities.
The company's shares fell 3.7% to $A9.57, caught up in a 3.7% drop on the S&P/ASX 200 index. The stock is up 22% this year.
(BusinessDesk)
Paul McBeth
Mon, 24 Aug 2015
Mon, 24 Aug 2015
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CallPlus $253m price tag largely goodwill, M2 accounts show
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