EML Payments Limited (ASX: EML) had come forward and made an announcement related to roll out of payments card program with the help of the press release. As per the press release dated January 21, 2019, this branded payments card program had been rolled out with PointsBet USA Inc. With the help of the payments card, PointsBet players would be able to send the funds to their gaming account and the access to the winnings would also be quick. The issued release also stated that both the companies (i.e. EML Payments Limited as well as PointsBet) would be partnering across the United States of America as PointsBet is working for the licenses in the states which are making efforts towards legalizing and regulating the sports betting.
According to the release, EML Payments Limited anticipates that Gross Debit Volume to revenue conversion rate would be largely in accordance with General Purpose Reloadable segment’s average. Also, there are expectations that first primary contributions towards the earnings would be witnessed in FY 2020. As a result of the rollout of the additional program, EML Payments Limited happens to handle eleven branded reloadable prepaid programs with respect to the gaming industry throughout the US, UK, Australia as well as Europe.
Earlier, EML Payments Limited had made an announcement related to the unloading of the shares. As per the release which contained information about unloading of the shares, Mr. Tony Adcock, who happens to be the non-Executive Director, had unloaded some part of the holdings in the company with regards to the managed sale process. Earlier, the company had published the presentation related to the annual general meeting or AGM in there was a mention about the FY2018 GDV (or Gross Debit Volume). The presentation reflected that the company’s Gross Debit Volume stood at $6.75 billion which implies the YoY rise of 53% on the YoY basis. EML Payments Limited had been encountering a strong growth in the Gross Debit Volume from the past few years. In the five-year period (FY2014-FY2018), the company had witnessed CAGR of 119% in the Gross Debit Volumes.
In FY 2018, EML Payments Limited’s Gross Debit Volume which was garnered from Reloadable segment amounted to $3.35 billion and implies the substantial rise of 163% on the YoY basis.
We would now understand how the company’s stock has been performing today and from the last few months. At the time of writing, EML Payments Limited’s stock is trading in red and the stock price is $1.440 per share which implies an intra-day fall of A$0.010 per share or 0.69%. The market capitalization of EML Payments Limited is ~$362.8 million. In the past six months, the company’s stock had delivered the return of -5.23% while in the time span of previous three months, the company’s stock had given the return of -9.66%.
However, in the period of the previous one-month, the stock of EML Payments Limited had delivered a return of -3.33%.