First Impression: MYOB (MYO) Interim result

Bell Potter

Recurring revenue represented 96% of total 1H16 revenue as compared to 97.3% prospectus forecast | SME segment: SME online users UP 37% to 195,000 and average revenue per paying user up 7% to $396. Number of paying users 570K- slightly below prospectus forecast of 571K | MYOB continues to invest in R&D to build the MYOB platform, with 68% of capital expenditure in 1H flowing directly to R&D | Operating free cash flow before capital expenditure $81.9m; cash flow conversion 76% is below prospectus forecast of 89% due to higher R&D capex of $19.8m as compared to forecast $8.4m | At 30 June 2016, Net Debt was down 5% from 31 December 2015 to $377 million, representing Net Debt/EBITDA of 2.3x.


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