Hansen Technologies Limited (ASX: HSN) has reported its half year result to December 2018.
Hansen Technologies is a global provider of billing software, customer information systems and data management systems to four industries: energy, water, telecommunications and pay TV. Hansen has more than 500 clients across the world and has been helping optimise their billing for more than 40 years.
What Hansen reported
Hansen reported that operating revenue went down by 5% to $112.4 million, EBITDA declined by 16% to $28.5 million (click here to learn what EBITDA means) and net profit fell by 28% to $12.9 million.
However, although there was a decline compared to the first half of FY18, it was an improvement on the second half of FY18. The revenue was the same, but the EBITDA margin improved from 22.7% to 25.3% and net profit increased by 18.3%.
The company said that the company won new contracts in Australia, Finland and Sweden during the half year. Hansen also commenced upgrades to the new version of its municipalities billing system and the company’s new utility analytics ‘Software as a Service’ (SaaS) product has gained momentum with several new implementations.
Hansen CEO Andrew Hansen said: “We also further strengthened our regional management structures with the appointment of regional finance directors for both EMEA and the Americas, as well as senior VP accounts and senior VP sales for EMEA, and we continued to grow the Vietnam development centre, which now has 70 people.”
Hansen Dividend
Hansen decided to pay a fully franked interim dividend of 3 cents per share, which is the same as last year.
Hansen’s Outlook
Hansen retained its previous guidance of operating revenue to be slightly lower than FY18 due to lower non-recurring licence fees and terminating a call centre contract in the US solutions business which will result in losing $1.9 million revenue. Costs are expected to be broadly in line with FY18.
Whilst there are certain factors to like Hansen, I feel that Gentrack Group Ltd (ASX: GTK) has been better at executing its business plans, so could be the better choice of the two. Otherwise, the growth shares in the free report below could be even better.
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