Infomedia’s Half Year Report to Shareholders – FY2019

By February 25, 2019 2019, ASX Announcements

INVESTMENT DRIVES GROWTH MOMENTUM
CASH EBITDA MORE THAN DOUBLES ON 1H18
Financial Results for the 6 months to 31 December 2018

25 February 2019 – Sydney, Australia: Infomedia Ltd (ASX:IFM), a leader in parts and services software to the global automotive industry, today announced its financial results for the six months to 31 December 2018 (1H19).

1H19 Result (compared to 1H18)

  • 14% increase in revenue – operating costs steady
  • 28% increase in NPAT
  • 36% increase in EBITDA and 114% increase in Cash EBITDA

Infomedia reported a 14 percent increase in revenue to $40.4 million for 1H19, when compared to $35.3 million reported in the previous corresponding period (pcp). Net profit after tax (NPAT) increased 28 percent to $7.3 million from $5.7 million pcp. Earnings before interest, tax, depreciation and amortisation (EBITDA), were $17 million, up 36 percent pcp. Cash EBITDA increased 114 percent pcp.

1H19
A$’000
1H18
A$’000
Movement
Group revenue40,38935,34514%
Cash EBITDA7,8893,681114%
Development costs capitalised8,6919,120(5%)
EBITDA16,98012,44136%
NPAT7,3155,70828%
Earnings per share (cents)2.361.8428%
Dividend per share (cents)1.751.4025%

Cash EBITDA for 1H19 was $7.9 million, up from $3.7 million pcp, reflecting strong revenue growth in each region and disciplined management of operating costs. Infomedia reports Cash EBITDA as a key measure to identify the cash impact of investing in development costs that are capitalised in reported NPAT.

The 1H19 result reflects the benefit of investment in prior periods, leveraging the company’s assets to deliver sustained growth.

Investment driving growth

As a global leader in parts and service software, Infomedia’s strategy is to drive innovation in the parts and service segment of the global automotive industry.

Infomedia is investing in capability to leverage its current data assets. In late 2018, Infomedia announced the acquisition of Nidasu, the leading provider of data analytics to automakers and dealerships throughout Australia, marking a key step in building Infomedia’s third area of business: data and insights.

Infomedia’s CEO, Mr Jonathan Rubinsztein said: “Our focus over the last three years of investing in our core assets has set a foundation to deliver future growth and drive innovation for the benefit of our customers.
“We are pleased with the improvement in Cash EBITDA, which is a key internal metric, and we believe a true reflection of how the business has performed in the period.

“Providing information to our global customer base with valuable insight from data, that is not readily or
currently available, is a significant opportunity for Infomedia. We remain focussed on providing solutions
that support auto manufacturers and their aligned dealers to improve productivity and retain customers,”
Mr Rubinsztein said.

Outlook

Infomedia’s first half result provides confidence to the board and management that Infomedia is on track
to deliver strong full year results in Revenue, NPAT and EBITDA.

Infomedia continues to explore growth opportunities, including acquisitions, that are complementary to
its automotive parts, service and data core. Infomedia will pursue strategies that provide an entry into new
markets, access to new customers, or provide innovation and added value to our customers.

Dividend

Infomedia declared a 1H19 dividend of 1.75 cents per share, unfranked. The dividend represents a payout
ratio of 74 percent of NPAT.

Infomedia’s dividend record date will be 4 March 2019 and the payment date will be 3 April 2019. The
Company’s Dividend Reinvestment Plan (DRP) will operate. No discounts will apply.

Shareholders wishing to participate in the DRP must ensure their DRP election forms are received by
Infomedia’s registry services provider, Link Market Services, by logging into the Investor Centre at
www.linkmarketservices.com.au before 5:00pm on 5 March 2019. Please refer here
for further information on the DRP rules.

Capital management

Capital management is an important component of delivering Infomedia’s growth strategy. Funding
options, including reducing the dividend payout ratio, remain under active consideration.