The owner of the Primus and Dodo telco businesses has increased its full year profit by 33 per cent and expects further growth in the year ahead.

M2 Telecommunications made a net profit of $43.8 million in the 2012/13 financial year, up from $33 million in the previous year, due to new revenue from its purchase of Dodo and Eftel in May 2013, and Primus in 2012.

The company has forecast a net profit of between $60 million and $70 million in the 2013/14 year, as its consumer business continues to grow.

M2 also provides services to businesses and small telco companies.

It will pay a final dividend of 10 cents per share, up from nine cents in the previous year.