- Record Group Gross Debit Volume of $80.2 billion, up 308% on
PCP;
- Record Group Revenue[1] of $234.1 million, up 21% on PCP;
- Group Underlying EBITDA[2] of $51.2 million, down 4% on
PCP;
- Group Underlying NPATA of $32.1 million, down 1% on PCP;
and,
- Continuing strong Balance Sheet and Cash position - $20 Million
Buy-Back to be conducted over next 12 months;
EML Payments Limited (ASX: EML) today released its FY22
Financial Results and Annual Report.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20220821005024/en/
EML releases its FY22 Annual
Report.(Graphic: Business Wire)
Today’s result demonstrates the substantial growth opportunities
across both EML's global markets and its range of payments
solutions and services. However, the respective 4% and 1% lower
underlying EBITDA and NPATA performance for FY22 underscore the
importance of the Strategic Review (''Review'') to be driven by
EML's newly appointed Managing Director and CEO, Emma Shand.
Ms. Shand, who commenced in the role in July this year, will
lead the Review through September and October with a particular
focus on business growth strategy, development of a more
customer-centric, streamlined and strengthened operating model,
including enhanced compliance and regulatory processes. The Board
recognises that improvement is needed, particularly in these
aspects of the business, to underpin reliable growth in both
revenue and earnings for shareholders over the next three to five
years.
Ms. Shand will present the outcomes of the Review to
shareholders at EML's Annual General Meeting in late November this
year.
Highlights for the year ended 30 June 2022 include:
Gross Debit Volume ('GDV') of $80.2 billion, up 308% on PCP
GDV represents the volume processed by the Group through its
proprietary processing platforms, indicating demand for its payment
services. In the year, it saw both organic growth in all segments
alongside acquisition growth as it consolidated the Sentenial Group
into the Digital Payments segment from 1 October.
- General Purpose Reloadable ('GPR') segment organically grew
global volumes by 27% to $12.4 billion (PCP: $9.7 billion);
- Gift & Incentive ('G&I') segment organically grew
volumes by 21% to $1.3 billion as it recovered from the impacts of
Covid-19 (PCP: $1.1 billion);
- Digital Payments ('DP') segment grew volumes by 654%,
predominantly through the acquisition of Sentenial, which was
consolidated from 1 October 2021, to $66.6 billion (PCP: $8.8
billion);
Revenue of $234.1 million, up 21% on PCP
The Group achieved record revenue of $234.1 million1, which is
growth of 21% on the PCP. The Group benefitted from the
introduction of new Account Maintenance Fees ('AMF') on certain
European GPR programs where the account has been inactive for more
than 12 months. This resulted in revenue of $23.5 million of new
AMF income stream, and $17.9 million of this is non-recurring
related to the inactive cards' back book. Revenue came from:
- GPR revenue grew 30% to $148.1 million, benefitting from the
new AMF revenue stream;
- The G&I segment generated $68.4 million of revenue, down
3%. This was a positive result noting that the prior comparable
period included $11.1 million in elevated breakage rates in the
North American business;
- The DP segment increased revenue, through the acquisition of
Sentenial, to $17.6 million, up 71% on PCP. The Open Banking
product, Nuapay, is strategically important and expected to
demonstrate a strong growth profile over the next 10 years;
The Group generated a gross profit margin of 68%, up 1% on
the PCP
EML's Gross profit margins were 68% as the contribution of
General Purpose Reloadable increased relative to the other
segments, with 57% of gross profit generated from the General
Purpose Reloadable segment.
EML expects to benefit in the short to medium term from the
expected continuation of interest rate increases by central banks
generally. EML holds $2.2 billion in stored value (FY21 $2.1
billion) generating interest income. EML has been impacted by
negative interest in Euro balances in the current and previous
periods.
Underlying overheads increased 41% to $108.4m (PCP: $76.8
million)
Underlying overheads increased as the Company invested in its
European operations to meet regulatory resourcing expectations.
Consolidation of Sentenial overheads for 9 months from 30 September
2021 also contributed to this increase.
Underlying EBITDA $51.2 million2, down 4% on PCP
The Group has seen a reduction in underlying EBITDA of 4% to
$51.2 million, largely reflecting increased investment in EML's
European operations.
Strategic Review
Over the six weeks since stepping in as MD and CEO, Ms Shand has
visited EML's global operations to get first-hand observations on
the company's strengths and weaknesses as perceived by both long
term and newly appointed management and staff members as well as
customers, shareholders, business partners and importantly, key
regulators.
''My early conversations with key stakeholders have been very
constructive and helpful in shaping my immediate focus. It
validates to me that whilst we have a strong base, it is time for a
proactive strategic review of all aspects of the business,'' Ms
Shand said.
''From what I have already learned, I am highly enthusiastic
about EML's growth and value potential. However, we won't
successfully deliver improved value of those opportunities for our
shareholders if we don't take a good hard look at how best to set
our operating structure and align our capabilities, systems and
processes to execute effectively for growth.
We have already taken some early steps to improve operating
focus, elevate a culture of regulatory compliance to support
sustainable growth and in optimising balance sheet strength.
I look forward to reporting the outcomes and initiatives from
our strategic review to shareholders at the AGM in November,'' Ms
Shand said.
About EML Payments EML provides an innovative payment
solutions platform, helping businesses all over the world create
awesome customer experiences. Wherever money is in motion, our
agile technology can power the payment process, so money can be
moved quickly, conveniently and securely. We offer market-leading
programme management and highly skilled payments expertise to
create customisable feature-rich solutions for businesses, brands
and their customers.
Come and explore the many opportunities our platform has to
offer by visiting us at: EMLPayments.com
Read more EML stories by visiting our Newsroom:
https://www.emlpayments.com/newsroom/
Footnotes:
1 Bond investments include a reduction of
$1,736,000 (2021: $1,958,000) for the non-cash amortisation of the
AASB 3 fair value uplift of the PFS bond portfolio at the
acquisition date.
2 EML generates interest income on Stored
Value balances and, as such, is a source of core revenue. Earnings
Before Interest, Tax, Depreciation and Amortisation (‘EBITDA’) is
used as the most appropriate measure of assessing the performance
of the Group. Underlying EBITDA includes R&D tax offset and
excludes share-based payments, acquisition costs, foreign exchange
gains or losses and non-recurring costs related to the CBI
remediation and Shine group proceedings. Underlying EBITDA is
reconciled to statutory profit and loss within the FY22 Annual
Report.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220821005024/en/
Investor Relations: Rob Shore, Group Chief Financial
Officer rshore@emlpayments.com +61 419 590 128
Ryan Chellingworth, Group Treasurer
ryan.chellingworth@emlpayments.com +61 437 786 055
Press Relations: Sarah Bowles, Group Chief Digital
Officer sbowles@emlpayments.com +61 439 730 968
Marie O’Riordan, Global Director of Public Relations
marie.oriordan@emlpayments.com +353 87 39 333 71
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