Commonwealth Bank Agrees To Waive Off The Immediate Payment From IncentiaPay

Digital payment solution provider IncentiaPay gets a time-relaxation for the repayment of any principal amount due to its current financier Commonwealth Bank of Australia. The news sent the share to nosedive 14.706% to last trade at $0.029 on 27 December 2018.

In today’s market release, IncentiaPay Limited (ASX: INP) announced that the company and its subsidiaries had inked a deed with lender Commonwealth Bank of Australia. Under the agreement, the lending bank CBA has agreed to waive immediate payment of any principal, with agreed principal repayments between 31 March and 28 June 2019. 

IncentiaPay stated that the deed allows the company to focus on production of its 2019 and 2020 Entertainment Book.

As at 30 June 2018, the company had access to unused loan facility of $9 million with an expiry date of 18 November 2019 and an unused overdraft facility of $3 million which is payable and cancellable on demand. Whereas, the Company’s net cash balance was $11.1 million as at 30 June 2018, following debt repayments of $19.4 million.

During the Fiscal year 2018, the company signed significant agreements with Alipay and Smartpay, which are expected to strengthen IncentiaPay position by capturing and capitalizing on a strong foothold in the growing Chinese tourism market across both Australia and New Zealand. The company believes that its partnership with Alipay will be a driver of additional revenue growth in FY2019 and beyond. But Fiscal 2019 is expected to witness a negative impact of the sale of the company’s Bartercard business.

Moreover, the company’s reported net loss after tax (NLAT) from ordinary activities was $62.2 million in FY2018 compared to a net profit after tax from ordinary operations of $10.3 million in FY2017. This net loss was reportedly driven by the impairments of $47.2 million, depreciation charges, restructuring costs, and other one-off expenses.

Its top line achieved overall gross revenue of $110.1 million in FY2018. This included $24.5 million from fee income (2017:$30.0 million), $0.2 million from license fees (2017:$1.6 million), $44.7 million, or 41 per cent, from membership subscriptions (2017:$49.4 million), $34.7 million from gift cards sales (2017:$21.9 million), and $2.7 million from other sources (2017:$7.5 million).

On the divisional front, the company reported revenue of $77.4 million from the Entertainment business, up 18% from FY2017 revenue of $65.9 million. While on the other side, IncentiaPay’s revenue from Bartercard business declined 27% to $32.7 million due to the continuous downfall in the level of trading within the exchange.

Over the past 12 months, IncentiaPay stock has massively fallen by 91.77% including the plunge of 76.55% over the last three months.


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