Guide takeover huge revenue boon for BPS Technology

THE acquisition of restaurant and activity guide Entertainment Publications by BPS Technology has proven a transformative exercise for the global trade exchange business.

BPS reported a 120 per cent increase in revenue to $110.5 million for FY17 – driven in large part by $65.8 million generated by the Entertainment division. Entertainment contributed $6 million to EBITDA, which rose 22 per cent to $13.7 million.

Net profit surged 40 per cent to $10.3 million. The Southport-based company bought Entertainment in September after raising $30 million to fund the purchase.

Chief executive Trevor Dietz said the division was delivering strong returns.

“The significant value contribution of our Entertainment business has exceeded our expectations at the time of acquisition and we have now completed the successful integration into BPS’s core operations,” he said.

BPS said Entertainment had increased the number of digital subscribers to 42 per cent of its 590,000 subscriber base. Revenue at the Bartercard division fell 11 per cent to $44.6 million due to a decline in income from licence and franchise sales.

However, cost reductions had led to the operating margin improving to 30 per cent.

Earlier this year BPS signed an agreement with iSynergi, the service partner in Australia to Chinese eCommerce giant Alibaba.com, to enable its merchants to be registered on Alibaba platforms.

BPS declared a final dividend of 2.25¢, taking its total FY17 dividend to 4.5¢.

Shares closed up 12.6 per cent or 9¢ at 80.5¢.