WiseTech Global Ltd (ASX:WTC) on Wednesday reported a first half underlying profit of $15.6 million, an 8% increase over the same period a year earlier.
WiseTech Global Ltd posted revenue of $93.4m million in the period. This was 31% higher than the same period last year. The company announced a fully franked interim dividend of 1.05 cents per share, an increase of 5%.
Despite these growth numbers, the WiseTech Global share price has taken a dive, down 22% to $11.37 in Wednesday afternoon trade.
WiseTech Global is a leading developer and provider of software solutions to the logistics execution industry globally. Its customers include over 7,000 of the world’s logistics companies across 130 countries, with its flagship product, CargoWise One, forming an integral link in the global supply chain. The software enables its customers to execute highly complex transactions in areas such as freight forwarding, customs clearance, warehousing, shipping, land transport and cross border compliance and to manage their operations on one database across multiple users, functions, countries, languages and currencies.
WiseTech’s CEO, Richard White said “Our global operations continued to deliver quality growth for the first half 2018, while we rapidly and relentlessly delivered significant new product innovations and extensive geographic expansion to accelerate our future growth.
The power and strength of our CargoWise One operations are reflected in their 100% recurring revenue, annual customer attrition rate of <1% and 46% EBITDA margin — all delivered while enlarging our geographic footprint and significantly expanding our pipeline of innovation to further build our leadership position.”
Outlook
WiseTech is forecasting continued revenue and profit growth in H2 FY18, with CEO, Richard White, saying “The strong momentum of the Group’s performance in 1H18 combined with the continued expansion across our global business gives us confidence to expect, subject to currency movements: FY18 revenue growth of 35% to 41%, revenue of $207m to $217m, and FY18 EBITDA growth of 32% to 39%, EBITDA of $71m to $75m”.
The WiseTech Global Ltd share price has dropped 20.14% since the beginning of the year, while the S&P/ASX 200 Index has fallen roughly 1.95%. The WiseTech share price has gained 121.57% in the last 12 months.
