GBST flags earnings downgrade
Publicly-listed financial services technology provider GBST has used a market update to flag a reduction in full-year earnings.
The company used a market update lodged with the Australian Securities Exchange (ASX) today to state that due to an anticipated reduction in services revenue, it expected EBITDA in the region of $12 million for the full year, compared to $17.2 million for the prior corresponding period.
It said it expect net earnings before EBITDA to be around $8 million for the first half of the current financial year.
The ASX statement quoted GBST chief executive and managing director, Robert De Dominicis as saying that the company had experienced project delays and deferred spending related to major projects in the UK in the first half.
"While we secured a new composer contract with an international client and UK recurring licence fee revenue has increased, services revenue will be impacted by a project that will not materialise and client deferral of other projects," he said. "As a result, FY17 earnings will be lower than previously expected."
De Dominicis said revenue had also been impacted by the decline in the British pound against the Australian dollar.
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