Mediaboss Marketing

Internet domain name manager Melbourne IT says it is well-positioned for the future despite a fall in annual profit.

Melbourne IT on Tuesday booked a net profit of $13.5 million for the 2011 calendar year, down 16 per cent on 2010's profit of $16.1 million.

The company said the 2011 annual result was in line with its market guidance provided in August, which predicted a stronger second half.

"2011 was one of our most challenging years yet, as we were not only dealing with further unfavourable foreign exchange headwinds and continued difficult global trading conditions but also making significant investments in system transformation where the benefits are not scheduled to flow until 2012," Melbourne IT chief executive, Theo Hnarakis, said in a statement.

"Despite the negative impact of a strong Australian dollar on our financial growth, Melbourne IT is positioned well for 2012 and beyond.

"We made solid progress in our systems transformation project, and invested heavily in new product and service development, which support our belief that 2012 will see a return to profit growth."

Hnarakis said adverse foreign exchange movements had cut earnings before interest and tax (EBIT) by $2.5 million in 2011.

Melbourne IT said its global leadership position on new ".brand" top-level domain names had boosted the 2011 result.

"The company expects the ".brand" opportunity to drive significant revenue growth again in 2012 and beyond."

Hnarakis said Melbourne IT's EBIT was expected to rise by at least 10 per cent in 2012 assuming that the Australian dollar exchange rate remained at current levels.

Melbourne IT's revenue for 2011 fell five per cent to $179.8 million, from $189.9 million in 2010.

The company declared a final dividend of eight cents per share, in line with the final dividend one year earlier.

Shares in Melbourne IT were seven cents higher at $1.51 at 1108 AEDT on Tuesday.

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Melbourne IT FY profit down 16%