Catapult Group: H1 FY19 Preliminary Results On Track To FY19 Guidance

  • Jan 30, 2019 AEDT
  • Team Kalkine
Catapult Group: H1 FY19 Preliminary Results On Track To FY19 Guidance

Catapult Group International Ltd (ASX: CAT) today announced the half-year performance for the period ended 31 December 2018. The leading provider of sports performance solution posted group revenue of $43.0 million for the H1 FY19, up by 32% compared to the previous corresponding period.

In the preliminary unaudited H1 FY19 results the company highlighted an increasingly large stream of Annualised Recurring Revenue (ARR) for the core elite business which is trending ahead of the company’s FY19 guidance. This translates a YoY growth of 25% in the H1 FY19 Annualised recurring revenue (ARR) of $57.4 million, up from the company’s FY19 guidance of growth above 20%.

Core Elite’s revenue and underlying EBITDA were $40.3 million and $3.5 million respectively, up by 29% and $3.4 million respectively based on Year-on-Year growth. It marks significant progress towards Catapult’s FY19 expectation to achieve 17%-20% growth in Elite Core Revenue and between $11 million and $13 million growth in Underlying Core EBITDA.

Commenting on the first half performance Catapult CEO Joe Powell said, “the core elite business continues to grow strongly and is on track to deliver Catapult’s guidance objectives for 2019.”

The positive performance of the group during the first half of FY19 underscores the two significant retail sales periods in the second calendar half that includes Black Friday in November, and the pre- and post-Christmas sales in December.  The launch of the PLAYR Smartcoach product for Prosumer soccer players in June 2018 has been the other driving force to the Catapult’s revenue growth during the reporting period.

For its new category, the company witnessed the unit sales growth of 114% to 11.4k with revenue growing to more than double to $2.7 million, an increase of 111%. However, the company believes that it is unlikely to meet its FY19 objective for Prosumer sales volume of 3.5x to 4x growth off an FY18 base of 14k.

Mr. Powell added that Cobalt is seeking opportunities to reduce its cash expenditure for Prosumer and is expected to share the related details in the coming months.

On the clients and subscription front, the company has reported new clients wins over the last six months which took its total client to 2,100 in core elite business. The strong revenue and EBITDA growth in the core elite business were underpinned by the Low churn with 3.5% of elite wearables (EW) subscription units not renewed, significantly down from 8.4% in the previous corresponding period. Catapult told that its elite wearables ARPU increased to $115.9 per month per unit in H1 FY18, up from $106 a year ago. EW revenue, including PlayerTek+, of $19.6 million grew 38% and Elite video revenue grew by 22% to $20.7 million.

However, the company’s gross margin reduced from 78% to 75% reportedly due to changing product revenue mix in the US business. Catapult’s cash at bank at 31 December 2018 was $27.1 million.

By the end of trading session, Catapult’s stock price plunged by 9.09% to trade at $0.800 on 30 January 2019. CAT has witnessed a negative performance change of 55.44% over the past 12 months.


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