Gentrack (ASX:GTK) records 83% fall in EBITDA, how are shares responding?

Be the First to Comment Read

Gentrack (ASX:GTK) records 83% fall in EBITDA, how are shares responding?

More on:
Gentrack Group Limited
Image source: © ArtDesignWorks |


  • Gentrack marked 12% hike in revenue in a year.
  • Growth in utilities business has backed the group’s revenue growth of 12%.
  • Gentrack will not distribute interim dividend due to NPAT loss.

Software solutions provider Gentrack Group Limited (ASX:GTK) has shared the half-yearly results for the period ending 31 March 2022. The company has shared mixed numbers. Revenue surged to NZ$57.1 million, up by 12% on the prior corresponding period. The growth in existing customers and new customers won in the utility business backed the revenue growth. EBITDA dipped by 83.2% from NZ$5.8 million to NZ$1.2 million.

Gentrack is an ASX and NZX listed company that develops and delivers specialist software solutions for leading utilities and airports across the globe.

Suggested reading: ASX 200 to rise; Dow soars 2%; Tabcorp Holdings in focus

At 10:04 AM AEST, the shares were spotted trading 1.85% low at AU$1.32 apiece. The shares are down by over 35% year-to-date. In a month, the share price has decreased by around 15%. In the past year, the shares have declined by more than 16%.

Worth mentioning here is that Gentrack shares were in line with the benchmark index, ASX 200 All Technology (XTX), which was down by 2.20% today (24 May 2022). In addition to this, the ASX 200 Information Technology (XIJ) was also in red, 0.07% down.

Key financial metrics of Gentrack’s half-yearly results

Image Source © 2022 Kalkine Media®

Despite the UK energy market turmoil, the ASX-listed software company said that its revenue has grown (12% up on the previous year). Investment in sales and marketing and strategic research & development also had a significant impact on cash and EBITDA.

The company had a cash balance of NZ$16.5 million at the end of the half, 36.4% lower than the previous year. It reflects the phasing of customer receipts on large projects.

The utility business increased to NZ$48.9 million. The UK utilities’ revenue increased by 25%, excluding insolvent customers, and ARR (annual recurring revenue) improved by 14%.

Volvo’s airport business’s revenue decreased by 4% to NZ$8.2 million. Gentrack said the industry downturn had affected the revenue.

During these six months, the net profit after tax (NPAT) was negative NZ$5.8 million. The company’s board announced that it would not distribute any interim dividend in light of the loss.

Outlook by Gentrack

Image source: © Nicoelnino |

According to the ASX-announcement, the company expects to improve its cash position in the second half of 2022 as it successfully delivers large-scale transformation projects.

Gentrack had confirmed that it would not change the guidance shared on 24 February 2022. The management said that it expects revenue of around NZ$115 million in FY22. The expected EBITDA is low single digits (NZ$’ m). 

Do read: How will a new government impact Australia-China relations?


Speak your Mind

Featured Articles

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK