In This Article:
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Revenue: $10.1 million, up 33% on the prior corresponding period.
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EBITDA: $1.4 million, nearly doubled compared to the prior corresponding period.
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Annual Recurring Revenue (ARR): $18.3 million, representing 33% growth when normalized for changes in key customer arrangements.
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Effective Cash: $10.2 million, including an R&D grant received after the end of the year.
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Cash Flow from Operations: $2.1 million, nearly 100% growth on the prior period.
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Net Profit Before Tax: Approximately $500,000 for the first half of FY25.
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After-Tax Profit: $399,000, the first after-tax profit since IPO.
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Enhanced Information Services Growth: 28% growth on the prior period.
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UK ARR Growth: 68% growth in the first half of FY25.
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Other International Markets Growth: 36% growth on the prior corresponding period.
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Hong Kong Acquisition Revenue: $3.6 million with a profit of just over $400,000.
Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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RAS Technology Holdings Ltd (ASX:RTH) reported a 33% increase in revenue for the first half of FY25, reaching $10.1 million.
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The company's EBITDA nearly doubled compared to the prior corresponding period, with a reported EBITDA of $1.4 million.
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The UK market expansion has been successful, with ARR growing by 68% in the first half of FY25.
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The acquisition in Hong Kong is expected to be accretive to earnings in the first year, with significant growth opportunities identified.
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The company has launched new products, including the Wagering 360 platform and BetBridge product, enhancing its market offerings.
Negative Points
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The Hong Kong acquisition involves $500 million in transaction costs and requires an additional $500 million investment.
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Data processing expenses have nearly doubled, reaching $1 million, primarily due to costs in the UK and France.
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ARR declined from $18.9 million at FY24 to $18.3 million in the first half of FY25 due to a change in arrangements with a key customer.
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The company faces potential risks from the takeover of Pointsbet, which could impact existing contracts.
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The Asian market expansion, while promising, involves significant investment and operational challenges.
Q & A Highlights
Q: Regarding the Hong Kong acquisition, it comes with $500 million in transaction costs and requires an additional $500 million investment. Will the earnings accretive expectation include these costs? A: Tim Olive, CFO: Some transaction costs will be short-term and should wash out through the remainder of this financial year. By FY26, we expect the acquisition to be accretive, despite upfront costs.