Empired’s growth stalled by protracted NZ election

Drags revenue down

Diversified IT services company Empired is blaming a protracted New Zealand election for dragging it first half revenue for NZ down by 13 percent, and limiting overall growth to two percent, despite revenue from its Auckland business growing by 18 percent.

The election date of 23 September 2017 was announced on 1 February 2017.

Wellington revenue was down 10 percent and overall revenue for Australia, New Zealand and the US up two percent to $A85m. Australian revenue grew 10 percent, and absent Wellington, revenue growth of the company’s business overall was 10 percent. NZ revenue accounted for 31 percent of the total, Australia 31 percent and the US 38 percent.

The company said NZ revenue had been heavily impacted by a pause in NZ public sector spend throughout the NZ election period. It expects Wellington revenue to return to growth in H2 as NZ public sector spending returns. “NZ continues to strengthen with a building sales pipeline,” the company said.

Prior to H1 of FY18, NZ revenue had been growing steadily at 14 percent CAGR from $A20.5m in H1 of FY15.

Government accounted for 21 percent of revenue in the half year and the company says it is not overly dependent on any one vertical: its income came from eight verticals of which energy and resources was the largest at 24 percent.

It says future growth will be underpinned by continued demand from major enterprise clients for its core service offerings including cloud, modern applications, data and analytics.

 

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