FZN expands its next byte business

Sydney, Oct 23, 2007 (ABN Newswire) - Australia's largest mobile telecommunication company Fone Zone rose by 3.5% today after it announced the acquisition of its Next Byte business and the Sydney-based Apple specialist company, Frequency Communications. "The Frequency business augments Next Byte's portfolio of business and service offerings," said Fone Zone Chief Executive, David McMahon. "We are delighted that the current owner and management of frequency will continue to operate their outlet under the Next Byte banner." Frequency Communications specialises in the sale of Apple products and technical support and also operates as a rental division for the film and television industries. The company's revenue last year was 7.9 million, with earnings before interest and taxes (EBIT) of $319,000. Fone Zone said the purchase consideration of Frequency was three times its 2007 EBIT and was funded entirely from cash reserves. Next Byte is Australia's largest Apple Reseller and won the Apple Reseller of the Year award for the fourth time this year. Fone Zone rose by 2.5 cents to close the day at 72.5 cents.

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