Pebble Beach Revenue Declines, Profits Rise in First Half

August 21, 2024 11:35 PM AEST | By Team Kalkine Media

Google News:

Pebble Beach Revenue Declines, Profits Rise in First Half — Image source: shutterstock

Recent News

EUR/USD poised to rack up more gains as ECB and Fed rate paths set to...

Carney launches ‘One Canadian Economy’ Act to unify trade, approvals

Trump signs orders to enhance drone defenses, support supersonic trave...

US job growth in May tops forecasts, but Macquarie warns cracks are em...

Broadcast and media technology software provider Pebble Beach Systems (LSE:PEB) reported a 12% increase in order intake for the first half of the year, reaching £4.9 million, up from £4.4 million in the same period of 2023. Despite a slight decrease in overall revenue to £5.3 million from £5.5 million year-on-year, the company saw significant growth in its higher-margin service level agreement (SLA) revenue, which rose by 21% to £3.1 million.

The shift towards recurring revenue, now comprising 58% of total revenue, contributed to maintaining an adjusted EBITDA of £1.4 million, consistent with the first half of 2023 but with an improved margin of 27%. Profit before tax increased to £0.3 million from £0.2 million, and adjusted earnings per share rose to 0.3p from 0.2p.

Operational highlights included the launch of the new IP-native PRIMA platform at the NAB trade show in Las Vegas and the strategic enhancement of the sales team, including the appointment of Sally Wallington as senior vice-president of sales. The company also adjusted SLA pricing, resulting in an increase in multi-year renewal orders.

Looking ahead, Pebble Beach reported a strong weighted pipeline valued at £9.8 million, reflecting a 13% increase from the previous year. The company is positioned to meet market expectations for 2024, with a focus on quickly delivering project orders in the second half due to reduced hardware lead times and enhanced operational readiness. The growth in multi-year SLAs provides improved visibility for future revenue.

John Varney, non-executive chairman, noted the group's resilience with increased order intake despite challenging market conditions that have led to delays in upgrade decisions. Varney highlighted the strong sales pipeline and improved visibility of recurring revenues as positive indicators. The board is focused on driving organic growth and exploring opportunities for technology enhancements, confident that PRIMA will support the industry's transition to IP.

At 1241 BST, shares in Pebble Beach Systems Group were up 4.57% at 12.02p.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.