Gentrack Reports Revenue Growth but Faces Profit Decline

Highlights:

• Revenue Growth: Gentrack Group (NZX: GTK) achieved a 25.5% revenue increase, reaching $213.2 million for the year ending September 30.
• Profit Decline: Net profit dropped to $9.5 million, impacted by a $1.3 million loss from an investment in an Australian tech energy company.
• Operational Stability: EBITDA improved slightly to $23.6 million, with core business performance remaining strong despite challenges.

Revenue Surges Despite Profit Dip

Utilities software company Gentrack Group (NZX: GTK) reported a 25.5% increase in revenue, reaching $213.2 million for the financial year ending September 30. However, the company's net profit declined to $9.5 million, impacted by a $1.3 million loss related to its investment in an Australian tech energy firm.

Stable Core Performance
Gentrack, which provides critical software for airports and energy and water utilities, noted earnings before interest, tax, depreciation, and amortization (EBITDA) of $23.6 million, a modest improvement of $400,000 compared to the previous year. Excluding one-off revenue impacts, the company’s core business remains resilient, driven by its utility and airport solutions.

Outlook and Strategic Focus

The company continues to prioritize innovation and operational efficiency in its key markets. Despite the profit dip, Gentrack remains optimistic about long-term growth, leveraging its expertise in delivering essential software solutions.

At the time of writing, Gentrack's performance reflects the challenges and opportunities of balancing growth investments and operational profitability in the utilities software space.

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