Myob Group Ltd (ASX: MYO) released its 2018 half year financial results to the market today revealing a 10% fall in net profit.

Myob Group is one of Australia’s largest accounting software providers.

Here are some of the highlights from its report:

  • Revenue went up 7% to $218.5 million
  • Underlying EBITDA increased by 3% to $92.7 million (click here to learn what EBITDA means)
  • Net profit declined by 10% to $25.3 million
  • Dividend per share maintained at 5.75 cents per share

MYOB has been working hard to convert its legacy desktop users to cloud/online products. The number of online subscribers increased by 61% to 492,000 during the year and the number of paying small & medium businesses (SME) increased by 5% to 631,000.

The revenue per business user is also a key metric for Myob. The average revenue per SME user (also called ARPU) increased by 2% to $430.

Tim Reed, the CEO of Myob, said: “The continued momentum in online subscriber growth, including both newly formed SMEs and migrations from our non-paying subscriber base, supports our decision to accelerate investment in the MYOB platform,”

Outlook

For the rest of Myob’s 2018 financial year the accounting software company is predicting high single digit revenue growth and higher EBITDA margins in the second half than the first.

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