Bailador Technology Investments Ltd. :BTI-AU: Earnings Analysis: 2016 By the Numbers : October 7, 2016

Bailador Technology Investments Ltd. reports financial results for the year ended June 30, 2016.

Highlights

  • Gross margins narrowed from -364.71% to -1,371.94% compared to the same period last year, operating (EBITDA) margins now 4,088.39% from 2,019.81%.
  • Change in operating cash flow of -130.11% compared to same period last year is about the same as change in earnings, likely no significant movement in accruals or reserves.
  • Earnings growth from operating margin improvements as well as one-time items.

The table below shows the preliminary results and recent trends for key metrics such as revenues and net income (See complete table at the end of this report):

N/A N/A N/A 2015 2016
Relevant Numbers (Annual)
Revenues N/A N/A N/A 0.32 0.31
Revenue Growth (YOY) N/A N/A N/A N/A N/A
Earnings N/A N/A N/A 4.02 8.86
Earnings Growth (YOY) N/A N/A N/A N/A 120.33
Net Margin N/A N/A N/A 1245.51 2859.35
EPS N/A N/A N/A 0.06 0.12
Return on Equity N/A N/A N/A 6.37 10.25
Return on Assets N/A N/A N/A 5.82 9.29

Access our Ratings and Scores for Bailador Technology Investments Ltd.

Earnings Growth Analysis

The company’s gross margins showed no year-on-year improvement. In spite of this, the company’s earnings rose, influenced primarily by the improvement in operating margins (EBITDA margins) from 2,019.81% to 4,088.39%. For comparison, gross margins were -364.71% and EBITDA margins were 2,019.81% in the last period.

Cash Versus Earnings – Sustainable Performance?

BTI-AU‘s year-on-year change in operating cash flow of -130.11% is around its change in earnings. This suggests that there are likely no significant movement in accruals or reserves for managing earnings this period.

Margins

The company’s earnings growth has also been influenced by the following factors: (1) Improvements in operating (EBIT) margins from 2,019.81% to 4,088.39% and (2) one-time items. The company’s pretax margins are now 4,088.39% compared to 1,777.09% for the same period last year.

Access our Ratings and Scores for Bailador Technology Investments Ltd.

Company Profile

Bailador Technology Investments Ltd. invests in Internet related businesses in Australia and New Zealand. It focuses on software, Internet, mobile data, online market-places and telecommunications-related businesses. The company was founded by David Edward Kirk and Paul Robert Wilson on August 4, 2014 and is headquartered in Sydney, Australia.

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