In the AGM presentation of EML Payments Limited (ASX: EML) held on 13 November 2018, the company has highlighted the company overview, FY2018 review, its business updates, Q1 FY2019 financial update as well as the FY 2019 guidance report. The company follows its mission of creating and also provide awesome, instant and secure payment solutions that help the customers of the company to get connected to their clients and customers at any point of time, any location wherever money is in motion.
EML runs around 1200 card programs across 21 countries in the world. It has its presence in Brisbane which is in Australia, Kansas City, North America and Birmingham, England, Dublin, Ireland Galway, Ireland Stockholm, Sweden in Europe. The company also highlights a list of its client who trusts the company. The gross debit volume (GDV) of the company has gone up by 53% which is equivalent to $5.75 billion. From the reloadable segment, GDV of $3.35 billion was generated. There was an increase in the group revenue by 23% i.e. the revenue increased by $13.1 million on the prior period. The company was able to generate $65.1 million through its recurring revenues. Australian revenue increased by 79% which was driven by salary packaging vertical. The GDV to revenue metric was 105 bps which are above the data given in the guidance report. The group EBITDA for FY2018 was reported to increase by 43%. The group EBITDA value is $20.8 million.
The company holds no debt and has a significant cash balance worth $39 million. As a result of European growth and the timing of cash flow conversion in North America, there was an increase in the Breakage accrual by $6.5 million. The group also made a significant loss in terms of tax worth $12.4 million primarily in Australia, Canada, and the United Kingdom. There was a net cash inflow from the operating activities was $6.372 million which has gone down by 67%. The net cash outflow from the investing activities has gone up by 2%. The net cash outflow from the investing activities was $6.637 million. The net cash inflow from financing activities has gone down by 87% and it was only 0.026 million.
It was highlighted in AGM that EML makes investments in growth verticals and also look for future opportunities through its product and technology innovations. They are working continuously to discover new niche markets across all regions. The company is pitching into new markets by the mobile payment technology. The company has entered into agreements with various companies. Some of them are PointsBet, Pandora, ECE, Instabank, neds, myCryptoWallet etc. The company is working continuously to highlight its presence in malls on a global scale. The company is also introducing reloadable cards for the segment which deals in sports betting globally.
In the FY2019, The GDV of the group has gone up by 10%. It is around $1,821 million. The sources of revenue are 94bps which is up by 11%. The revenue generated through gift and incentives was $9.3 million. The revenue generated from general purpose reloadable (GPR) was $6.2 million. Around $1 million was generated through the virtual account numbers.
For the FY2019, as per the guidance report, the revenue should be in the range $82 million to $88 million.
By the end of the day, the market price of the share was A$1.515 which has gone down by 4.114% since morning. The market capitalization was A$395.02 million and the PE ratio was 175.56x.
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