The Mitula Group has updated the market on its projected full-year results for 2017. The company expects to have revenues of AUD 33.5 million – up 20 percent over the previous year. Underlying this growth in revenues has been a 14% increase in yield per visit.
The company expects to deliver an EBITDA of AUD 11.5 million equating to an EBITDA margin of 34.3%. This is flat from the previous year and reflects the investment being made by the Mitula Group in its Closer to the Transaction strategy.
Simon Baker, the Chairman of the Mitula Group, commented “while the company missed the revised forecast by just 1%, it did deliver a strong 20 percent growth in revenues. In constant currency terms, this growth would have been 22 percent and within the revised forecast range.
“We are particularly pleased with the strong progress Mitula has made in transitioning the business away from a reliance on the volume of visits to our sites and towards the amount of value it extracts from each visit. This can be seen in the 14 percent year on year increase in the revenue per visit we receive.
“This increase in revenue per visit is being driven by the Closer to the Transaction strategy we are implementing. This strategy sees us rolling out advertising and transaction-based products to capture more value from each visit.”
In early trading, the Company’s shares were down 14% or 8c to $0.47 giving a market cap of just AUD 101 million. This indicates a revenue multiple of just 3x and an EBITDA multiple of just 8.8x. This is significantly less than its peers.