Catapult Group’s Shares Mounted On ASX After Reporting Strong Q1 Results

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On 24 October 2018, Catapult Group International Limited (ASX: CAT) provided an update on its first quarter performance and also released guidance for FY 2019. The company reported strong Q1 results and announced new customers in elite sport and positive progress with PLAYR. Following this news, the share price of the company increased by 14.286 percent as on 24 October 2018.

As per the release, the cash receipt from customers increased by 25 percent to $34.7m in Q1 FY 2019 as compared to the Q1 of FY 2018. Net operating cash flow increased by $0.6 million to $8.9 million as compared to the Q1 of FY 2018. At the end of Q1 2019, the company was having cash and cash equivalent of $33.6 million. In the first quarter of FY 2019, the company repaid a debt of $3.54 million. The company made payment of $1.8 million for hardware associated with Q4 sales carried over into Q1 of FY 2019.  The revenue of the company increased by 39 percent to 20.6 million in Q1 FY 2019 as compared to the Q1 of FY 2018. 

The company also made an announcement regarding the signing of the French Football Federation, which includes the 2018 FIFA World Cup Champions, the French men’s national football team. This means that 15 out of the 32 teams which were competing at this year’s World Cup were using Catapult products. The company has signed an agreement with another of the biggest and most successful football clubs in the world, Real Madrid CF. This agreement makes sure that Real Madrid’s prestigious football and basketball teams use Catapult’s elite wearables technology. Real Madrid is also planning to use Catapult’s ClearSky technology and have the integrated services of a Catapult performance consultant.

The Company’s Prosumer business- PLAYR has received positive reviews in Planet Football, Football365, Soccer365, Absolute Gadget, Gadget Head and Goal.com. Following this, PLAYR also announced a partnership with Fuse Soccer, where the technology will be used by footballers at Universal Orlando Resorts in association with Celtic FC and New Balance.

Company’s FY19 guidance is focused on the drivers of value and it shines further light on the profitable growth of the core elite business. For FY 2019, the company is expecting the Elite Core Revenue to be in between $86m and $88m which is 17% to 20% higher than the revenues of FY 2018. The company is expecting the underlying core EBITDA to be in between $11m and $13m which implies growth between 37% and 63% on FY 2018. The company also confirmed that it is on track to have positive cash flow by FY 2021.

In the past six months, the share price of the company decreased by 21.60 percent as on 23 October 2018. CAT’s shares traded at $1.120 with a market capitalization of circa $187.08 million as on 24 October 2018.


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Kunal Sawhney
Kunal Sawhney is founder & CEO at Kalkine and is a richly experienced and accomplished financial professional with a wealth of knowledge in the Australian Equities Market. Kunal obtained a Master of Business Administration degree from University of Technology, Sydney. He has an extensive expertise in quantitative and qualitative stock selection practices, and he proficiently navigates on equity related matters while enabling them achieve success in complex market conditions. Kunal features as a guest speaker at various equity research platforms and news channels on a regular basis, sharing his valuable insights on the subject. His firm provides holistic view of stock investment recommendations to retail investors with respect to financial performance, strategy, and industry catalysts. The firm looks for stocks that are out of favour with the market and a combination of tangible and intangible aspects is used for stock picking with a great focus on income and growth portfolios. Kunal is featured regularly on Sky Business, CNBC and Australian Financial Review

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