Hansen Technologies (ASX:HSN) share price rockets 10% on 'strong performance'

The Hansen Technologies Limited (ASX: HSN) share price was among the best performers on the All Ordinaries index on Monday.

The billing technology company's shares ended the day 10% higher at $5.46 after the market responded positively to its half year results.

Hansen share price rockets following half year results

• Operating revenue up 5% to $148.9 million
• Underling EBITDA up 4% to $54.2 million
• Underlying net profit after tax up 13% to $23.6 million
• Partially franked interim dividend of 7 cents per share, up from 5 cents a year earlier.

What happened during the first half?

For the six months ended 31 December, Hansen reported a 5% increase in operating revenue to $148.9 million. Management advised that its global diversification, coupled with its two primary verticals, has delivered revenues from new customer delivery, digital transformation, strategic upgrades, and specific professional services initiatives.

It notes that more and more customers are looking to Hansen as a valued long-term partner as they look to secure their digital future.

As for its earnings, the company's underlying EBITDA rose 4% to $54.2 million. This reflects a stable cost base and growth in licence revenues.

Hansen's Chief Executive Officer, Andrew Hansen, said: "The 1H22 result was a great outcome for Hansen across all key metrics. Once again Hansen is proving its resilience and strong business fundamentals delivering strong performance in a challenging Global market."

Outlook

Management has maintained its previous guidance, with operating revenue expected to be marginally improved over FY 2021 (excluding Telefonica) with an EBITDA margin trending towards its long-term target.

Looking further ahead, management has also reaffirmed its longer term targets. This is for revenue of $500 million by 2025, which is expected to be driven by organic revenue growth and its aggregation strategy.

In addition, it is targeting long-term EBITDA margins exceeding 30%, driven by an ongoing focus on profitability and operational leverage.