Macquarie Communications Infrastructure Group - Results 30 June 2005 - Macquarie International Infrastructure Fund Limited's Investment in Macquarie Communications Infrastructure Group

17 August 2005

Macquarie Communications Infrastructure Group (MCG) today announced its financial results for the year ended 30 June 2005.

MCG’s results for the period are not directly comparable to the previous corresponding period (pcp) due to MCG’s acquisition of the 54% interest in Arqiva (formerly NTL Broadcast).  As the acquisition was completed on 31 January 2005, the MCG results reflect ownership of Arqiva for the five month period from 1 February to 30 June 2005.  The results also show the fully consolidated impact of the acquisition due to MCG’s controlling stake in Arqiva.

MCG CEO Mr Scott Davies said “MCG has been transformed during the past year.  MCG is now a substantial international owner and operator of communication infrastructure assets with an enhanced portfolio of complementary businesses in Broadcast Australia and Arqiva. 

“MCG’s expanded portfolio has achieved operating revenues of $481.5 million and EBITDA¹ of $219 million, which is in line with our internal plan and a very pleasing performance given the changes underway during the year.

“These strong results have enabled MCG to pay a distribution of 29 cents per stapled security for the year, which is in line with IPO² prospectus forecasts and a major achievement given the more than doubling of MCG’s investor base following the equity raising to fund the Arqiva acquisition.

“Broadcast Australia has continued its record of sustained improvements in operating performance during the year, reflecting a continued drive to deliver quality services to customers and expand the business through acquisition and new product developments.  BA revenues increased by 14.3% and EBITDA by 21%, resulting in an EBITDA margin improvement to 61.6%, above the pcp margin of 58.2%.

“Importantly, the Arqiva business has performed to plan for the five months since acquisition as we continued to transition operational systems and reorganised key areas of the business to more accurately reflect the value-add opportunities.

“The Board and management of MCG consider the outlook for 2006 to be positive.  The underlying businesses in our portfolio are strong and we expect the conversion of broadcast transmission from analogue to digital will continue to provide opportunities for growth both in Australia and the UK.  Arqiva is also expected to benefit from continued 3G mobile network expansion and associated increase in site-sharing demand as well as a tightened focus on core customer contracts in the public safety business.

“MCG is also well positioned to participate in value enhancing acquisitions, leveraging the combined technical expertise and experience of its Australian and UK operational teams and strengthened industry position internationally,” Mr Davies said.

Distributions

MCG paid a total distribution of 29.0 cents per stapled security for the 12 months to 30 June 2005, including an interim distribution of 14.4 cents and a final distribution of 14.6 cents.

MCG Directors confirm the distribution forecast for the 2006 financial year of 36.0 cents per stapled security.

Performance in brief

• Download MCG Full Year Results (pdf 655 KB)

¹  Earnings before interest, tax, depreciation and amortisation (pre fees and non-operating items)
²  MCG’s initial public offering (IPO) was completed in August 2002

Macquarie Communications Infrastructure Management Limited is not an authorised deposit-taking institution for the purposes of the Banking Act (Commonwealth of Australia) 1959, and Macquarie Communications Infrastructure Management Limited's obligations do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 ("MBL").  MBL provides a limited AUD1,750,000 guarantee to the Australian Securities and Investments Commission in respect of Corporations Act obligations of Macquarie Communications Infrastructure Management Limited as a responsible entity of a managed investment scheme.  MBL does not otherwise guarantee or provide assurance in respect of the obligations of Macquarie Communications Infrastructure Management Limited, the performance of funds managed by Macquarie Communications Infrastructure Management Limited or the repayment of capital.

For further information, please reference website www.macquarie.com.au/au/mcg/ or contact:

Media Enquiries
Jane Rotsey
Public Affairs Manager
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Email: jane.rotsey@macquarie.com

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Stuart Green
Head of Investor Relations
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Email: stuart.green@macquarie.com