Source: Radio New Zealand
ERoad
Transport software company ERoad slumped to a $144.2 million interim loss after a major accounting write-down in its North American assets, which did not deliver to expectations.
Key numbers for the six months ended September compared with a year ago:
- Net loss $144.2m vs $1.5m loss
- Revenue $99.1m vs $95.9m
- Annualised recurring revenue $178.1m vs $166.7m
- Operating earnings (excluding one-offs) $2.5m vs $4.7m
- Non-cash impairment $134.7m
Leaving aside one-offs, its operating earnings fell 47 percent, which ERoad said was due to lower capitalisation of research and development, and faster amortisation because of a large legacy customer termination in North America.
Last month, ERoad announced it would prioritise its New Zealand and Australian investment, as the North American market did not deliver to expectations, amid strong competition and the impact of tariffs.
Mark Heine Eroad / Supplied
Chief executive Mark Heine said he was committed to financial discipline while progressing ERoad to its next phase of growth.
“We’ll keep focusing on what we control: generating cash, delivering for customers, and directing investment where it creates the most value,” he said.
“The opportunity in front of us is significant, and the team is ready to make the most of it.”
Its free cash flow position rose to $6.2m in the period, compared to $0.1m in the same period a year ago.
ERoad said the improvement in annualised recurring revenue reflected growth in the Australian and New Zealand market, which was offset by a decline in North America.
Heine told RNZ the company also saw opportunities in New Zealand, particularly around the move to electronic road user charges.
“The government knows we provide a great service to them – close to a billion dollars last year – without any cost whatsoever when it came to eRUC,” he said.
“They are really interested in our solution, but they’re also consulting with the broader industry, and we’re partaking as part of those industry consultations.”
Heine said ERoad was “really confident” that it was “well positioned” to capitalise.
The company maintained its full-year revenue guidance of between $197m and $203m.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
