MACQUARIE Telecom continues to search for web-hosting companies to acquire as its own hosting division delivers a small earnings upgrade to full-year results.
Macquarie Telecom announced yesterday that full-year pre-tax earnings would be $28-$29 million, up from the $26-$28 million forecast halfway through the financial year.
Company secretary Michael Simmonds said the company had $56.3 million cash and was searching for opportunities.
''We have been looking at acquisitions for the last six to nine months, more in the hosting industry rather than the telecommunications [industry],'' he said.
''Part of the problem is there are not many hosting businesses of a size that we would be interested in buying.''
Macquarie Telecom announced it would spend $15 million upgrading its hosting facilities, where it runs websites and applications for businesses with web-based services.
At least 20 per cent of Macquarie Telecom's revenue came from contracts with government agencies, Mr Simmonds said.
And voice, mobile and broadband services were still a key part of the business even though the revenue from those streams was declining, because those services complemented the hosting business.
