Rhipe posts $3M in net profit

Rhipe posts $3M in net profit

Sees Microsoft CSP Office 365 seats grow by 200,000

Dominic O’Hanlon (CEO - Rhipe)

Dominic O’Hanlon (CEO - Rhipe)

Rhipe has closed the first half of the 2019 financial year with $3 million net profit after tax (NPAT), or 181 per cent growth compared to the previous corresponding period when the company posted $1.1 million in NPAT.

According to the publicly-listed distributor, the result for the half year ended 31 December 2018, follows a period of further investment in a number of key strategic initiatives including expansion in operations across South East Asia, Korea, New Zealand and Australia.

Furthermore, the business also invested in the indirect Microsoft Cloud Solutions Provider (CSP) program for Office 365, alongside investment in operations to support the expansion of Microsoft’s public cloud infrastructure platform, Microsoft Azure.

The number of CSP Office 365 seats grew by 200,000, at this time last year the company reported 186,000 seats and now has 385,000 seats.

Overall, the distributor closed the first half with revenue at $21.5 million, or 30 per cent increase from last year.

Earnings before interest, tax, depreciation and amortisation (EBITDA) was $4.6 million, or a 66 per cent increase from the previous corresponding period.

Rhipe has also seen an increase return from its investment in its service and support operations with an increase in sales of $1 million to $4.3 million up 29 per cent.

Meanwhile, sales from software products and services was $115 million for the period, up 30 per cent. Overall, Rhipe’s sales from software products were $110 million for the first half, up 30 per cent driven by strong growth in Office 365 and Azure sales.

Rhipe also saw strong growth in Asia with local sales up 53 per cent.

Growth in CSP operations (both Office 365 and Azure) with sales of $27 million in the first half, a 100 per cent increase compared to $13 million in the previous corresponding period.

In January, Rhipe announced the acquisition of Queensland-based Microsoft partner Dynamics Business IT Solutions (DBITS) in a deal that could be worth up to $8 million, with $4.5 million payable on completion.

Rhipe's operating profit for the first half was $5.6 million, the distributor expects to deliver operating profit for the full financial year to 30 June 2019 in the range of $11.5 million to $12 million.

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