iiNet shares are getting crushed on flat profit results

Oli Scarff/Getty Images

Investors punished internet service provider iiNet after it posted a below expectations profit result.

Profits were flat at $29.065 million for the first half on an 11% rise in revenue to $547 million. This was below analyst forecasts of about $36.6 million in profit.

CEO David Buckingham says the business gained more than 25,000 new broadband customers in the first six months of the 2015 financial year.

“When viewed over the last 12 months, iiNet has generated close to 50,000 broadband net additions,” he says.

iiNet is getting closer to becoming Australia’s number two fixed line internet provider. Its subscribers to fixed-line services increased to 975,000 from 950,000. Optus, the current number two to Telstra, says its internet customers had fallen to 988,000.

The company declared a fully franked interim dividend of 10.5 cents.

iiNet shares are trading almost 10% down at $6.49.

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.