GBST reports earnings drop amid challenges
Financial services technology firm, GBST, reported a drop in earnings before interest, taxes, depreciation, and amortisation (EBITDA), total revenue and other income, as well as a drop in net profit after income tax.
It came after what GBST managing director, Robert DeDominics, described as a difficult year, following a leadership transition, internal restructure, project delays, and deferred client spending in the UK, Australia, and Asia.
Industry consolidation contributed to project delays, he said.
EBITDA decreased by 18 per cent from $24.5 million in the previous corresponding year to $20 million in the current year.
Net profit after tax (NPAT) dropped from $15.3 million in the previous corresponding year to $9.3 million in the current year, while adjusted NPAT dropped from $19.2 million to $13.4 million.
Total revenue and other income dropped by five per cent, down from $114.3 million to $108.1 million, and was due to project delays and reduced services revenue from new measures, as well as negative effects of foreign exchange.
DeDominics said operating EBITDA for the first half was $8.5 million, while it was $11.5 million in the second half.
"Had it not been impacted by a decline in the value of sterling compared to the Australian dollar caused by Brexit, on a constant currency basis, operating EBITDA for the second half would have been $12.5m, in line with guidance," he said.
In Australia, the company was looking at a migration to a large banking and wealth management group, while it was preparing to launch a new retail fixed income product.
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