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MYOB’s online subscriptions grew by 57 per cent over the last calendar year, bringing its net profit up by 2 per cent.
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MYOB posts online subscriber surge as it contemplates takeover bid
21 February 2019
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11 minute read
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The accounting software provider saw its revenue jump 7 per cent to $445.2 million for the 12 months ending 31 December 2018, with net profit after tax and amortisation at $103.6 million.
MYOB now has 628,000 online subscribers, up 57 per cent from the prior comparable period, and believes it is on track to reach its goal of one million subscribers by 2020.
The number of paying SMEs also increased to 641,000, up 4 per cent from the year before.
The company has parked $52 million to accelerate development of its MYOB Platform, and a further $30 million in sales and marketing investment to drive referrals and direct SME purchases.
“This is an important time for MYOB, as we double down and focus on completing the MYOB Platform, which we believe will create significant efficiencies for our SMEs and their advisers and position the company and our clients for future growth,” said MYOB chief executive Tim Reed.
Mr Reed also flagged MYOB’s new strategic partnership with Mastercard, extending its payments services to payables (both suppliers and payroll) within MYOB‘s software; opening up a $200 billion transaction volume opportunity for MYOB.
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The ASX-listed business has not declared any dividend due to its scheme implementation with potential buyer KKR.
If the proposed scheme of arrangement with KKR does not proceed, the MYOB board will consider whether or not it will declare a special dividend at that time.
Under the scheme, MYOB agreed to ‘go-shop’ provisions with KKR that permit MYOB and its advisers, up to and including 21 February 2019, to solicit competing proposals and with a commitment from KKR to sell its shareholding into, or vote in favour of, any qualifying superior proposal.
MYOB is set to provide a market update with the outcome of the ‘go-shop’ period tomorrow.
More to come.
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