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Catapult Group Increased Revenue by 58% in 1H16

Catapult Group Increased Revenue by 58% in 1H16
Catapults achieved a record unit sales of 3407 units in 1H16
Feb 29, 2016 By Simon Herrmann Tags: CAT

The sports technology company Catapult Group International Limited (ASX:CAT) released financial results for the first half of FY16. The company delivered an improved result with revenue rising 58% in six months to December 2015.

Catapult Achieved Record Unit Sales

Catapult’s total contract value (TCV) rose 75% on the previous interim period, to $14 million. Subsequently, revenue rose 58% to $7.1 million. Revenue generated from offshore regions in 1H16 increased by 67% to 5.3 million. The offshore revenue growth was led by Asia-Pacific and the United States which surged 318% and 71% respectively. The company achieved record unit sales of 3407 units, a 48% increase on the pcp.

The company’s subscription fleet expanded 91% on the previous period to 5753 units. The annualised recurring revenue increased 100% on 1H15 at $9.4 million and gross margin improved 3% to 86%. The resulting net loss for the period was narrowed by 1% to $2.6 million.

Shaun Holthouse, Chief Executive Officer elucidated on the company’s performance: “This was yet another half of very strong growth across our key metrics, as we rapidly build a very stable recurring revenue base. Importantly, we have continued to make significant progress penetrating key leagues globally. With these results, plus the additional capital being deployed under our new growth strategy, we are well positioned as we head into our peak sales period and confident of delivering on management’s minimum unit and TCV guidance.”

Outlook

The competitive market forces continue to be weak to moderate according to the management. The company raised $6 million in capital in November 2015, to accelerate its growth strategy and broaden its sales and marketing platform globally during the 2016 year.

The management reiterated the upgraded guidance provided in November 2015 and expects to achieve a minimum 8000 units in sales and $24.5 million in TCV by the end of FY16.

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Simon Herrmann Author: Simon Herrmann Feb 29, 2016

Simon is a financial analyst at independent research firm Wise-owl who wants to change the world by disrupting the cliché approach to investment decision making with convergent thinking. Wise-owl’s goal is plain and simple: Find the best opportunities for our members by following a proven methodology and to create long-term value through high-quality advice, innovation, technology and education. We combine industry experience and the agile mentality of a start-up. Wise-owl is the future of stock market investing.

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