MYOB on track to hit 1 million online subscribers in 2020, announces 61% uplift in online growth
24 Aug 2018
MYOB today released its financial results for the half year ending 30 June 2018, reporting record
online subscriber growth, up 61 per cent to 492,000, and on track to surpass 1 million online
subscribers by 2020.
The results also pointed to solid financial growth delivered during
a period of investment, with
revenue up 7 per cent to $218.5 million and underlying EBITDA up 3 per cent to $92.7 million.
The roll-out of the Connected Practice vision and the accelerated delivery of the MYOB Platform
have driven significant efficiencies and savings for SMEs and Advisers, reflected in an increase in
online SME subscribers, increased customer retention, and an uplift in average revenue per paying
MYOB CEO Tim Reed said: “We are pleased to see more SMEs and
accountants taking up the
opportunities we are creating through our Connected Practice vision.
“Our client-focused innovation continues to drive business improvements and personal rewards for
businesses throughout Australia and New Zealand and it is pleasing to see the impact we’re having in
helping SMEs and advisers to secure their future in an increasingly digital world.
“The strong growth in online subscribers, including migrations from our non-paying subscriber base,
supports our decision to accelerate investment in the MYOB Platform. Our focus on creating
industry-leading online tools and services, including real time data feeds and automation, will deliver
even greater efficiencies for small business owners and their advisers,” said Mr Reed.
Innovations released in the previous six months include new compliance, tax and advisory features,
such MYOB Advisor, which uses AI and Natural Language Generation (NLG) alongside financial data
visualisations, to enable accountants and advisers to start a conversation with their clients and
support their clients’ business needs and financial position.
The results also highlighted continued strong growth in the Enterprise Solutions and Payments
segments, contributing 17 per cent to total group revenues in the six months ending 30 June 2018.
“It is exciting to see our investment yielding results for our clients and we look forward to
maintaining this momentum and delivering market-leading customer experiences,” said Mr Reed.
Revenue for the six-month period increased to $218.5 million, up 7 per cent on the prior year, and
underlying earnings before interest, tax, depreciation and amortisation (EBITDA) grew to $92.7
million, up 3 per cent on prior year. MYOB’s preferred measure of after-tax profit, NPATA1, was
$45.8 million, 6 per cent lower than the prior year, with associated NPATA earnings per share (EPS)
of 7.7 cents, 5 per cent lower on prior year due to higher costs under the investment period.
Commenting on the financial results, MYOB’s Chief Financial Officer Richard Moore said: “It’s been a
solid start to the 2018 financial year, and we are pleased with the strong operational growth we have
seen during 1H18, driven by our strategic vision for the industry and our investment in the MYOB
“We expect to see further growth through our accelerated investment plans, with $80 million of
additional investment into R&D and Sales & Marketing over the next two years.”
The Company’s balance sheet remains strong and the Board has declared a final dividend of 5.75
cents per share, a payout ratio of 75 per cent of 1H18 NPATA.
In August 2017, MYOB announced an on-market share buyback of up to 5 per cent of the Company’s
issued capital, and to the close of 30 June 2018, has acquired more than $38 million in shares from
existing cash. Together, the dividend and buyback represent a total of $69 million of capital returned
to shareholders in 1H18, and more than $238 million returned to shareholders since listing in 2015.
The buyback arrangement will conclude on 7 September 2018.
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MYOB is a leading provider of online business management solutions. MYOB makes business life easier for approximately 1.2 million businesses across Australia and New Zealand by simplifying accounting, payroll, tax, practice management, CRM, job costing, inventory and more. MYOB operates across three core segments – Clients and Partners (business solutions to SMEs and Advisers); Enterprise Solutions (larger businesses) and Payment Solutions. We also provide ongoing support via many client service channels including a network of over 40,000 accountants, bookkeepers and other consultants. We are committed to ongoing innovation, particularly through our Connected Practice Strategy and through the development of the MYOB Platform. For more information visit our website or follow @MYOB on Twitter.
1 MYOB considers NPATA (net profit after tax and after adding back the tax effected amortisation expense related to acquired intangibles), rather than NPAT, to be a more meaningful measure of after tax profit due to the large amount of non - cash amortisation of acquired intangibles that is reflected in NPAT.