The share price of Myob Group Ltd (ASX: MYO) has plunged 8.33% lower, down 26 cents to $2.86 on the release of its half-yearly results.
The cloud-based business management solutions provider posted revenue for the 6 months ended 30 June 2018 of $218.5 million, up 7% on the prior year.
Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) grew to $92.7 million, up 3%.
Myob said its preferred measure of after-tax profit, NPATA (net profit after tax and amortisation) was 6% lower at $45.6 million.
Record growth in online subscribers
The number of online subscribers surged to 492,000, up 61% on the prior year, which remains on track to reach 1 million in 2020.
CEO Tim Reed said: “The first six months of 2018 has seen exceptional growth in our online subscriber base, reaching almost 500,000 online subscribers. This growth demonstrates that SMEs and accountants have embraced our Connected Practice vision for the industry and recognise the role we play to help their businesses succeed.”
The company has declared an interim dividend of 5.75 cents per share, representing a payout ratio of 75% of 1H18 NPATA.
The dividend and a share buyback, announced in August 2017, represent a total of $69 million of capital returned to shareholders in 1H18.
Chairman Justin Milne said: “the return of $69m in capital to shareholders in the period is a testament to the Board’s confidence in the business and MYOB’s commitment to delivering value to its shareholders.”
Myob reaffirmed its previous guidance that revenue growth and EBITDA margins are expected to be higher in 2H18 than 1H18. Full-year 2018 revenue growth is expected to be more than 8%.
Since the beginning of 2018, the Myob Group Ltd share price has fallen 19.75%, compared to a gain of 3.16% for the S&P/ASX 200 Index.