Shrinking MovieLine business impacts Netcall numbers

23rd Feb 2016 15:43

(ShareCast News) - An ongoing reduction in the number of moviegoers phoning in for cinema listings impacted on Netcall's interim results on Tuesday, but the company was confident its change in product mix was helping it remain well above the waterline.The AIM-traded customer engagement software provider said it had record bookings during the period, and trading in line with management expectations.Its annualised recurring core revenues increased by 8% to £10.5m, while its recognised revenue was £8.13m, slightly down from £8.6m in the prior interim period.Netcall said that was a result of the ongoing reduction in MovieLine service and changes in the blend of business.The company's EBITDA of £2.11m - down from the £2.66m reported in the first half of 2015 - was a result of investment and MovieLine, the board said.Netcall's profit before tax was £0.79m, down from £1.41m, and its basic earnings per share were 0.56p, down from 0.86p."We have seen strong demand for our Liberty product suite with record growth in sales orders. As a result, our order book of contracted future revenues increased by 43% and annualised recurring core revenues grew by 8%," said CEO Henrik Bang."In line with our strategy, an increasing share of new business is SaaS-based contracts, providing recurring revenue streams and increased visibility in future periods. The ongoing success of our Liberty platform, combined with our high levels of recurring revenue, means the board is confident in delivering a positive outcome to the year," he added.Netcall said it maintained strong cash conversion during the period, with cash generated from operating activities of £1.82m, down from £2.08m.It also maintained a debt-free balance sheet, with net cash funds of £15.2m, up from £13.7m at the start of the period.Netcall's board announced its maiden interim dividend, of 0.95p per share.