Still no dividend from the accounting platform group Xero, despite a surge in revenue and profits in the six months to September 30.
Despite that and signs of a slowing growth rate in revenue and customers (but a surge in profits), the shares hit another all-time high yesterday.
Xero told the ASX and NZX yesterday that interim revenue soared 21% to $NZ409.8 million compared to the same time last year despite its small business customers being hit by Covid-19.
The Trans-Tasman company reported net profit soared to $NZ34.4 million, up from $NZ1.3 million the previous year.
Earnings before interest tax depreciation and amortisation surged 86% in the half-year to $NZ120.8 million, despite that sort of growth, there’s no dividend and no sign of one being planned.
Xero said it grew its subscriber numbers to 2.45 million, up 19% on the same time last year.
Subscriber numbers in Australia topped 1 million driven by the move to Single Touch Payroll and the government’s JobKeeper stimulus payments.
CEO Steve Vamos said the results demonstrated the strength of the business which continued to grow through a “difficult period”.
“Subscriber growth was positive in all geographies, with stronger net subscriber additions in Australia and New Zealand with relatively less disruption in those markets from Covid-19,” he said.
“We’ve responded to Covid 19 by delivering new products and services that meet our customers and partners changing needs.”
Shares in the firm had closed at a record high $122.71 on Wednesday and yesterday rose another 0.6% to $123.50 by the close for a new closing high.
