Eroad bounces back in NZ
Transport technology services company Eroad has seen new customer growth in New Zealand outstrip that other key markets in the first half of the current financial year.
Interim results reveal Eroad contracted 4,160 units in New Zealand in the six months to September 30, which is roughly on a par with the rate it achieved at the same time last year.
Business growth in Australia and North America has slowed considerably over the same period.
The US added 1,292 units during the first half of the 2021 financial year, compared with 9,342 in the previous full financial year. In Australia, the figure was 253 units, compared with 784 in the 2020 financial year.
Steven Newman, pictured, chief executive, says despite growth stalling in those markets, the business has come through the “Covid-ridden half year” well.
“In a period of extreme uncertainty and operating restrictions across our markets, the continued growth in contracted units, stable SaaS average revenue per unit and asset retention rate is reflective of Eroad’s strong customer value proposition,” he adds.
New Zealand was the least impacted of Eroad’s markets by Covid-19 restrictions, and “growth rates in the markets returned to pre-pandemic levels relatively quickly once restrictions were lifted”.
Revenue here climbed to $27.4 million in the six months to the end of September 2020, a 13 per cent increase when compared to the same period a year earlier.
EBITDA in the New Zealand operation increased over the same time frame by 14 per cent to $18.5m.
Overall, the company’s revenue increased 19 per cent, from $38.5 million to $45.8m, in the six-month spell when compared to the same period of 2019.
Eroad says this reflects the growth in contracted units from 108,414 to 122,193 over the same spell, as well as an increase in average monthly revenue per unit from $57.60 to $58.80.
EBITDA of $15.3m was up nearly one-third from the same period the year before but flat compared to the six months prior. The company explains this reflects increased spending on research and development, which saw operating expenditure climb from $26.6m to $30.5m period-on-period.
The company reported a $1 million profit after tax, up from a $100,000 loss in the same period the previous year.
Eroad anticipates a small increase in revenue in the second half of the financial year compared to the first six months. In New Zealand, it predicts similar growth to the past four years.
