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MYOB's NZ business delivers 23% gain in revenue in 2016

Thursday 23rd February 2017

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 MYOB, the Australian payment software developer, boosted revenue from its New Zealand division by 23 percent in a year when it continued to expand its portfolio with Kiwi acquisitions. 

New Zealand revenue rose to A$67.3 million in calendar 2016, from A$54.8 million a year earlier, Sydney-based MYOB's annual report shows. That outpaced the 11 percent pace of revenue growth from its Australian businesses, which account for the bulk of the firm's sales at A$303.1 million. Research & development grants worth A$1.5 million in the year also chipped in to the ASX-listed company's revenue from this side of the Tasman. 

MYOB bought Kiwi enterprise resource planning (ERP) software writer Greentree for $28.5 million last year, as it diversifies away from its traditional account software and into payroll and human resources software. That acquisition contributed 15 percent of MYOB's gains in its enterprise solutions, or an extra A$6.1 million, while the 2015 purchases of Ace Payrolls and IMS for a combined $23.7 million boosted SME solutions revenue by A$8.2 million. 

The company continued its acquisition spree, announcing today it will buy Australasian payments processor Paycorp for A$48 million, giving MYOB a secure payments service to more than 6,500 clients across a range of industries. 

MYOB today reported net profit of A$54 million, compared to a loss of A442.3 million when it faced a number of finance costs over its initial public offering. Stripping out those effects, earnings before interest, tax, depreciation and amortisation rose 12 percent to A$171.5 million on a 13 percent gain in revenue to A$370.4 million. 

Its SME solutions unit, which covers the accounting software business, lifted its paying user base 7 percent to 585,000, with a 32 increase in SME online users to 225,000. 

The board declared a final dividend of 5.75 Australian cents per share, up 15 percent from a year earlier, and taking the annual payout to 11.25 cents. 

MYOB said it expects double-digit revenue growth in 2017 with ebitda margins to remain in a range of 45-to-50 percent. 

The shares climbed 7.3 percent to A$3.82.

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