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MYOB's NZ business delivers 23pc gain

NZ Newswire logoNZ Newswire 23/02/2017 Paul McBeth

MYOB, the Australian payment software developer, boosted revenue from its New Zealand division by 23 per cent in a year when it continued to expand its portfolio with Kiwi acquisitions.

New Zealand revenue rose to A$67.3 million in calendar 2016, from A$54.8m a year earlier, Sydney-based MYOB's annual report shows. That outpaced the 11 per cent pace of revenue growth from its Australian businesses, which account for the bulk of the firm's sales at A$303.1m. Research & development grants worth A$1.5m in the year also chipped in to the ASX-listed company's revenue from this side of the Tasman.

MYOB bought Kiwi enterprise resource planning (ERP) software writer Greentree for NZ$28.5 million last year, as it diversifies away from its traditional account software and into payroll and human resources software. That acquisition contributed 15 per cent of MYOB's gains in its enterprise solutions while the 2015 purchases of Ace Payrolls and IMS for a combined $23.7m boosted SME solutions revenue by A$8.2m.

The company continued its acquisition spree, announcing on Thursday it will buy Australasian payments processor Paycorp for A$48m, giving MYOB a secure payments service to more than 6,500 clients across a range of industries.

MYOB said it expects double-digit revenue growth in 2017 with ebitda margins to remain in a range of 45-to-50 per cent.

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