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MYOB reaches record milestone

Software provider MYOB has announced that it has reached the 100,000 online subscribers milestone and flagged a possible market listing while doing so.

News Staff Reporter 26 September 2014
— 1 minute read

The subscriptions milestone comes after MYOB posted a record first half of the year result with revenue growth of 21 per cent and EBITDA growth of 29 per cent.

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MYOB said the percentage of new clients taking out an online subscription has now passed 70 per cent, up from less than 20 per cent two years ago.

Chief executive Tim Reed said accountants are playing an increasingly important role in MYOB’s online subscription growth.

“In the very early days, early adopters got on to online accounting themselves without advice from accountants or bookkeepers and that’s normal in technology adoption. But, we are now at a time when about seven or eight per cent of Australian small businesses have moved to online accounting and as we hit that 10 or 12 per cent, when you usually transition from early adopters into the early majority, those types of users are going to be far more reliant on their accountant and the advice of the accountants than that very first group.”

Mr Reed said MYOB has taken advantage of a strong year to reassess debt arrangement to prepare for the next stage of growth, saying a future market listing is likely.

“With continued strong financial performance and favourable credit markets, it is an appropriate time to negotiate greater flexibility in debt arrangements, lowering the cost of our debt and building in the flexibility for a possible market listing in the future.

“To that end we are actively negotiating with a syndicate of banks to refinance our senior debt and are close to finalising the arrangement,” he said.

Mr Reed told AccountantsDaily there are no “imminent” plans to list the company but touted a return to the ASX in the next couple of years.

MYOB reaches record milestone
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