26 July 2021: ASX RELEASE
(BRISBANE, AUSTRALIA – 26 July 2021) Sports, leisure and hospitality SaaS technology provider MSL Solutions Limited (ASX: MSL, “MSL”) is pleased is pleased to provide the Company’s Q4 2021 Business Update.
Financial and operational performance
MSL delivers its fourth consecutive quarter of positive operational cash flows, resulting in a $5.7 million surplus of cash from operations for FY21.
Despite the ongoing disruptions from COVID-19 across its international operations, the Company generated $2.0 million in cash from operations in Q4FY21 a $3.2 million year-on-year quarterly cashflow improvement (excluding government subsides).
The strong financial performance has come alongside a series of business development wins for the Company. MSL continued to expand its strategic technology partnerships in partnering with Doshii, a part of x15 ventures — a wholly-owned subsidiary of Commonwealth Bank and provides hospitality and other venues with the technology to access and integrate apps such as remote ordering available via its platform.
The agreement will enable MSL’s POS venues to connect directly to the likes of Deliveroo, Mr Yum, OrderUp and Mobi2Go, along with MSL’s existing partner me&u and reservations apps including OpenTable and Resy. Although the initial fees to be generated are not expected to be significant, the partnership will bring a number of material benefits to MSL, including:
The Company continued to expand its Stadia and Arena customer footprint with the following major contracts:
The agreement provided for the supply of mobile POS solutions to 22 ASM Global venues across the United Kingdom and will see some of the UK’s most iconic sports, leisure and entertainment venues convert across to MSL and Kappture’s stadium-specific POS solution.
And subsequent to year end, MSL, signed a multi-year contract with the world’s leading private owner and operator of soccer clubs and facilities, City Football Group Ltd (“CFG”).
Under the terms of the deal, MSL will install more than 450 terminals operating Kappture POS software across two CFG venues in Manchester, the United Kingdom, including Manchester City FC’s home ground, Etihad Stadium.
Over the initial three-year term, MSL will earn upfront hardware and project services revenue in addition to the recurring software licencing and support revenue, with annualised revenue of £147k (~AUD$273k) per annum for the initial 3-year period.
CFG, the majority owner of Manchester City FC, is the sole or substantial owner of soccer clubs and related businesses in major cities across the world, including Melbourne, Mumbai, New York, Sichuan and Yokohama.
MSL’s Golf segment continues to see growth with golf experiencing a resurgence in Australia. Golf Australia have been buoyed by the increase in memberships, MSL’s subsidiary, Golflink Partners, continues to provide handicapping for every golfer in Australia.
MSL’s European subsidiary, Golfbox, continues to deliver outstanding systems to our long-term partners such as Norway, Switzerland and Denmark to name a few. Golfbox throughout Covid has continued to improve its bottom-line results.
FY21 Guidance and Outlook
Based on unaudited management accounts, the Company expects to deliver at least $3.5 million of EBITDA (including government subsidies of $1.0 million). This EBITDA result represents a $4.4 million improvement on FY20 EBITDA loss of $0.9 million.
SwiftPOS, acquired in November 2020, has experienced 20%+ growth in revenue since acquisition and there remains strong upside in FY22.
As a global stadia SaaS business headquartered in Brisbane, MSL is very excited that our hometown has been selected to host the Olympic and Paralympic Games in 2032. We are looking forward to supporting our many venue partners deliver a world-class event.
With the company’s strong cash position and the robust recurring revenues, the Company remains focused on delivering organic growth while exploring acquisition and partnership opportunities that offer the capacity to strengthen the Company’s technology platform and product mix.
MSL Solutions CEO, Pat Howard, said:
“The end of the June quarter marked a significant milestone for MSL as the company looks to the year ahead with optimism.”
“Our fourth quarterly operational cash surplus, which we delivered without any material government subsidies, reflects the firm footing that MSL has established as we enter a period of technology investment among venue operators rising at a rapid pace.”
“MSL’s latest contract with City Football Group represents a very positive start to FY22. This is the second deal with a major international venue operator that we have announced, following from the agreement we signed with ASM Global early in the June quarter.
We continue to explore the commercialisation options of our collective POS solutions transaction volumes which exceed $5 billion annually.”
“We are confident about the outlook for each of our businesses, although we remain aware of the challenges that COVID-19 continues to pose for some of our clients. We are focused on helping our customers to exit the pandemic with modern, versatile and feature-rich guest engagement solutions that help them to grow their business.”
About MSL Solutions Limited
MSL Solutions Limited (ASX: MSL) is a leading SaaS technology provider to the sports, leisure and hospitality sectors. We help some of the world’s most iconic venues around the world – stadiums & arenas, pubs & member clubs, sporting associations, golf federations and more – to deliver outstanding customer experiences during every engagement.
MSL develops and delivers fully integrated and modular systems that connect customers to venues through mobile and contactless entry, ordering and payment solutions. We seamlessly connect front-of-house to back-office, offering an end-to-end guest engagement platform which provides actionable insights on key success metrics to venues of all sizes.
MSL Solutions has over 5,000 customers with offices in Australia, UK and Denmark.