MELBOURNE IT BOOSTS HALF YEAR PROFIT FIGURES.

MELBOURNE, Aug 22 Asia Pulse - Domain name and internet services provider Melbourne IT Ltd has boosted its half year profit figures and says it expects to do even better in the second half.

Melbourne IT today posted a half year net profit of $A2.18 million ($US1.64 million), up 19.5 per cent on the previous year's figure of 1.82 million.

The company's revenue for the half year increased by 20.4 per cent to $35.1 million from $29.16 million in the first half of 2004.

Melbourne IT's managing director Theo Hnarakis said the profit figure represented the company's fifth half of growth in a row.

Mr Hnarakis said a continued focus on tight cost controls and diversification of the company's services would see profit continue to improve.

"Looking to the second half of the financial year, Melbourne IT expects continued improvement in revenue and profit which will give the company its sixth half of profit growth in a row," he said.

Mr Hnarakis said the company had healthy cash reserves and was in a strong position to continue looking for acquisitions.

Melbourne IT today also announced an interim dividend of three cents, up from two cents in the first half of 2004.

Mr Hnarakis said the company's push to diversify was going well and it had made 14.3 per cent of its total revenue for the half from sources other than domain names, compared to 4.9 per cent in the first half of 2004.

The company's total number of customers has also increased by nine per cent to 230,000.

At 1422 AEST Melbourne IT's shares were down 0.5 of a cent to $1.335.

ASIA PULSE c 22-08 1521