According to sources, the merger talks between iiNet Ltd. (ASX:IIN) and M2 Telecommunications Group Limited (ASX:MTU) but were eventually abandoned. Goldman Sachs and UBS were reportedly involved in the deal.

M2 Telecommunications Group Limited announced earnings results for the half year ended December 31, 2012. For the half year, the company reported revenue of $305.2 million against $185.4 million a year ago. EBITDA was $55.1 million against $27.6 million a year ago. NPAT was $24.7 million or 15.7 cents per share against $16.7 million or 13.5 cents per share a year ago. Underlying NPAT was $31.7 million or 20.2 per share against $19.0 million or 15.3 cents per share a year ago. Net debt was 116.2 million, down from $125.3 million at the start of the financial year. EBITDA was up 99% to $55.1 million. The acquisition of Primus Telecom Holdings, completed in June 2012, has been a significant contributor to earnings growth. The company provided earnings guidance for the year ending June 30, 2013. For the year, the company expects revenue in the range of $610 million to $650 million, EBITDA in the range of $108 million to $118 million, NPAT in the range of $43 million to $48 million and NPAT (underlying) in the range of $55 million to $60 million. EPS was in the range of 27 cents to 30 cents and EPS underlying was in the range of 35 cents to 38 cents. Free cash flow was in the range of $51 million to $56 million. The board of directors of the company has also declared an interim dividend of 10 cents per share, fully franked, the company's 17th consecutive dividend. Election notices must be received by the record date of March 22, 2013. The dividend will be paid and DRP shares issued on April 16, 2013.

M2 Telecommunications Group Limited, H1 2013 Earnings Call, Feb 25, 2013