Gentrack Group (ASX:GTK) downgrades FY20 outlook

Company News

by Katrina Bullock

Gentrack Group (ASX:GTK) has downgraded its outlook for the 2020 financial year.

Forecast revenue has decreased significantly and the company now expects EBITDA for the 2020 financial year to be between 8 million and 12 million New Zealand dollars.

Gentrack is taking action to reduce its cost base by approximately 8 million New Zealand dollars on a full year basis.

The company blames the downgrade on difficult conditions in its utility markets; regulatory price caps on electricity in the UK and Australia; competitive conditions; and the change in income realisation timelines as a result of its move from an upfront license model to a recurring SaaS model.

Shares in Gentrack Group (ASX:GTK) closed 3.92 per cent higher at $2.65 on Friday.