Here's why the Booktopia (ASX:BKG) share price is in focus today

All eyes will be on the Booktopia (ASX: BKG) share price today following the release of the company's half-year results. Here's a look at how Booktopia performed.

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Gretchen grew up in a small Connecticut town where she learned to read The Wall Street Journal as part of the grade six enrichment program. She moved to Australia in 2002, earned a Master of Arts (Professional Writing) and went on to spend eight years writing on Wall Street. In June 2018, Gretchen returned to Australia and has since developed a keen interest in all things ASX. In December 2020, she started writing for the Motley Fool. Gretchen's usually writing something, reading a book or chasing her dogs around.

Published February 22, 2021 9:59 am AEDT

The Booktopia Group Ltd (ASX: BKG) share price will be on watch today, after the online book retailer released its half-year results for FY21 (1HY21) this morning.

Here's a look at what the company has reported today.

Young male with glasses holding book in front of his face with a surprised expression, indicating a share price movement. — Image source: Getty Images

Booktopia reports record first-half result

Booktopia reported a revenue increase of 51.1% to $112.6 million for the period.

The company shipped a record 4.2 million orders, compared to 3.2 million orders during the prior corresponding period. The average order value for 1H FY21 was $69.87.

The average annual spend for customers increased from $103.32 to $123.57.

Booktopia's underlying earnings before interest, tax, depreciation and amortisation (EBITDA) (adjusted for IPO and conversion of preference share costs) fired up 502.3% to $8 million.

The company advised that strong ongoing demand and increased distribution capacity supported its 1H FY21 results.

Commenting on Booktopia's performance, Chief Executive Officer Tony Nash said:

The demand we experienced from the beginning of the 2020 calendar year extended right through to Christmas, helping us to deliver the largest half-year revenue in the company's history. Our investment in expanding capacity and automation ensured we were able to continue to meet our customer promise despite the unparalleled growth in volumes.

Outlook

Noting the uncertainty that the coronavirus continues to cause the business environment, Booktopia provided a revised FY21 forecast.

The company is now expecting an FY21 revenue of $217.6 million, 7.9 million units shipped, and an underlying EBITDA of $12.9 million.

January and February 2021 have already delivered revenues in excess of those previously forecast. Booktopia also advised that its present database contains 5 million customers, with 2.3 million repeat customers.

Looking ahead, Mr Nash added that:

We will continue our growth strategy, investing in key areas of the business to cement our online market leadership and drive increased market share. This includes the continued expansion of our Publishing Services and Booktopia Publishing businesses.

The Booktopia share price has jumped 7.31% year-to-date and last closed at $2.79. The business has a current market capitalisation of $383.2 million and 137.4 million shares outstanding.

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