In This Article:
Release Date: February 17, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Infomedia Ltd (ASX:IFM) reported a 2% growth in total revenue for the first half of 2025, despite a significant customer churn.
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The company maintained stable margins and achieved a 7% growth in cash EBITDA.
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Infomedia Ltd (ASX:IFM) declared a fully franked dividend of $0.022 per share and announced a share buyback program of up to 5% of issued share capital.
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The acquisition of a 50% stake in Intellegam, a generative AI startup, is expected to enhance Infomedia's product offerings and create new market opportunities.
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The company has a robust balance sheet with $78 million in cash and zero debt, allowing for strategic investments and shareholder returns.
Negative Points
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Infomedia Ltd (ASX:IFM) experienced a churn event with a large customer, impacting annual revenue by approximately $4 million.
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The integration of DMS in the Americas is paused due to a cyber incident at a partner, delaying growth in the region.
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The rebuild of the InfoDrive CX tech stack has temporarily paused its growth, affecting sales performance.
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The automotive industry's disruption, including OEM consolidation and changing tariffs, poses short-term challenges for contract signings.
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The effective tax rate increased to 27%, driven by higher UK tax rates and reduced R&D tax credits in Australia.
Q & A Highlights
Q: How do you see the US tariffs impacting Infomedia's business? Will higher prices lead to lower volumes of new car sales, and could this affect existing revenues? A: Jens Monsees, CEO, explained that dealerships are likely to focus more on after-sales services like parts and repairs, which are profitable areas where Infomedia operates. As the average age of vehicles increases, there is more opportunity for Infomedia's after-sales solutions. Additionally, dealerships and OEMs are striving for more digital and efficient operations, which aligns with Infomedia's offerings.
Q: Can you provide an update on the DMS integrations in the US and their importance for growth? A: Jens Monsees noted that the integration of Superservice with DMS is paused due to a data breach at a partner company. The bidirectional integration is crucial for realizing the full value of Infomedia's products, and they are awaiting a secure gateway from their partner to resume integration.
Q: Is the scale phase still set for the beginning of FY26, or has it been delayed? A: Jens Monsees clarified that the strengthen phase will continue into FY26, and the transition to the scale phase is not a sudden change but a gradual process. The company is still focused on delivering its strategy during the strengthen phase.