Market stifles yawn at Advantage profit hike

By Phil Boeyen, ShareChat Business News Editor

Wednesday 9th August 2000

Advantage shares slipped Wednesday despite the company announcing a 41% lift in per share earnings from 7.9 to 11.1 cents.

Profit to the end of June was also well up on last year, rising to $6.7 million from $3.4 million.

Advantage says the profit was achieved on revenues of $63.9 million, up 203% on revenues of $21.2million for
the corresponding period last year.

CEO Greg Cross says over the last twelve months Advantage has been transformed from a kiwi eftpos company into one of the largest eServices companies in the Asia Pacific region.

"While it has been a year of fluctuating fortunes for Internet companies, Advantage continues to deliver revenue
growth and profitability despite our rapid growth."

Mr Cross says each of the company's operating units made a significant contribution to the result and increased in profitability, with web services accounting for 26% of revenues, payment solutions 20%, retail solutions 32% and portable technologies 22%.

Advantage says it currently holds the number one position in every market it contests, and aims consolidate that lead.

ADV stock has been steadily climbing in past weeks and investors were likely looking for even more spectacular news than the upsurge in profit which may have already been built into the price. Advantage shares fell back under $3.00 on Wednesday to close at $2.97.

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