Hansen Germany deal boosts guidance
After the market close on Tuesday, Hansen Technologies, the ASX-listed global provider of software and services to the energy, water and communications industries, announced that it has executed an agreement with Telefónica Germany GmbH & Co. OHG to licence via a prepaid subscription for Hansen’s Cloud Native Communications product suite to support Telefónica’s operations within Germany.
The agreement is for a fixed initial term of five years with associated revenue of approximately $25 million.
“We are delighted and very proud to be engaged with Telefónica. This agreement is testament to and a ringing endorsement of the Hansen Communication Suite and Hansen’s ability to continually evolve as a valued partner to our customers” said Andrew Hansen, Hansen’s Global Chief Executive Officer.
FY21 guidance upgrade
Due to this strategically significant customer win Hanson upgraded its FY21 guidance:
• Revenues: $316m - $326m (constant currency), $306m - $316m (reported).
• Underlying EBITDA: margin 37% - 39%.
The resulting FY21 EBITDA margin is higher than the company's expected long-term margins of 32% - 35%. This is the result of all licence revenue being recognised in 2H21 as is required under IFRS.
Hansens share price received a boost last week after it released its earnings report for the first half of the 2021 financial year. The company reported that revenues came in at $147.1 million, a 2% bump on the prior corresponding period. As a result, the company achieved an underlying EBITDA of $54.3 million, a 44% increase on 1H20, which helped push net profits after tax up 77% to $31.6 million.