GetBusy Plc (LON:GETB) shares dropped in early morning trading Wednesday after it reported a decline in its underlying earnings despite a revenue increase.
The AIM-listed business software firm reported adjusted underlying earnings (EBITDA) before development costs had declined 7% to £783,000 during the period despite revenues rising 14% to £5.15mln compared to the first half of last year.
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The adjusted underlying earnings including development costs of £1.27mln was a widened loss of £492,000 compared to a £395,000 loss in the first half of 2017.
The drop in adjusted underlying earnings was due to an additional £383,000 in corporate costs following a demerger and the company’s initial public offering in August 2017.
Despite the drop in underlying earnings, the company said it had seen a significant increase in recurring revenues in the period, up 16% to £4.49mln as it continued to focus on shifting its income stream toward recurring subscription revenues for its software.
The firm also reported increased revenues across its individual UK, US, and Australia & New Zealand markets, which grew by 16%, 15% and 35% respectively.
Looking ahead to the second half, GetBusy chief executive Daniel Rabie said the group would “seek to capitalise on favourable market conditions” and increase investment in customer acquisition across all of its territories.
He added that the company had launched its SmartVault document management software in the UK and Australia and had already secured customers for the product in these territories.
In early morning trading Wednesday, GetBusy shares were down 6.3% at 51.5p.