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MYOB eyes 1 million online following profit announcement

MYOB eyes 1 million online following profit announcement

Accounting software provider MYOB has announced a 10 per cent growth in net profit after tax and amortisation (NPATA) for the year ending 31 December 2017, and laid out some of its development plans for the 12 months ahead.

Technology Jotham Lian 26 February 2018
— 1 minute read

NPATA grew 10 per cent to $102 million, with earnings up to $189.9 million from $171.4 million in 2016, with MYOB recording a 60 per cent growth in online subscribers.

The board declared a final dividend of 5.75 cents per share, representing a payout ratio of 66 per cent of second half NPATA, to bring the final dividend to 11.5 cents.

Speaking to Accountants Daily, MYOB chief executive Tim Reed said he was pleased with the results and believed the company was on track to reach one million online subscribers by 2020.

“In our guidance, we expect to see an acceleration of our online ledger growth, so in this past year we saw 60 per cent growth taking us to 399,000 online clients and we expect to grow even more next year,” said Mr Reed.

Mr Reed also said the outlook for FY18 remains positive with the $180 million acquisition of Reckon’s accountants practice management division. Despite MYOB buying a sizeable chunk of the market, Mr Reed expects to secure regulatory approval in the second quarter of 2018.

Mr Reed was also keen to emphasise that — despite concerns to the contrary — MYOB would not be undertaking any wholesale changes with Reckon’s practice management division.

“We've made an absolute commitment that we're going to maintain the products that they use today. We're not going to force migrate them from one on-premise client-server architected accounting practice suite to another one,” said Mr Reed.

“We will not be stopping the support of APS and forcing them to MYOB Accountants Enterprise but we are going to be investing to build a brand new online suite for them,” he said.  

Looking ahead, Mr Reed said the firm would be looking to grow the business advisory tools of MYOB’s ‘connected practice’ suite, with the launch of MYOB Advisor in 2018.

“We've been showing clients the launch of a new product called MYOB Advisor and that's a product that uses artificial intelligence and natural language generation to turn financial numbers into written sentences just to make them more digestible for client,” said Mr Reed.

“For accountants, it is really easy to send a report that includes graphs and written analysis to their clients so they can start to develop a deeper understanding of their business performance.”

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MYOB eyes 1 million online following profit announcement
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