EML Chairman and CEO Present at the AGM, Key take-home points

  • October 30, 2020 03:24 PM AEDT
  • Team Kalkine
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EML Chairman and CEO Present at the AGM, Key take-home points


  • The group entered the market benchmark index ASX 200 in December 2019
  • A multiyear program, “Project Accelerator” has been launched to drive the growth for the next few years, under which $10-15 million would be spent towards direct investment.
  • The group has a strong balance sheet and cash reserves to take advantage of opportunistic acquisitions.
  • An increase of 51% in the GDV from pcp was witnessed, and EBITDA was reported at $10.05 million, growth of a massive 213%
  • The controlled initiatives reduced the cash overheads by $0.7 million over the pcp

EML Payments Limited (ASX: EML) is a payment solution for brands and helps the disbursement payout’s, gifts, incentives and rewards through its next-generation technology. The company processes more than $19 billion in GDV each year in 27 currencies.

On 30th October 2020, the company addressed its 2020 Annual general meeting and gave a detailed presentation regarding the business performance during recent times.

Achievements for the year 2020

To start with 2020 achievements, the company recognized the opportunity the pandemic had presented and worked on it proactively, which led the group to achieve new height.

  • It entered the market benchmark index ASX 200 in December 2019.
  • EMP acquired Prepaid Financial Services [Ireland] Limited in March 2020 and is generating the majority of its revenue from the General Purpose Reloadable segment.
  • To drive the Group’s growth over the next three years, a multiyear program, “Project Accelerator” has been launched with refined group strategy
  • With a strong balance sheet, ample cash reserves and no senior secured debt, the group is in a position to successfully execute on the Strategy and take advantage of opportunistic acquisitions.

Details about the Project Accelerator

The Project Accelerator is a multi-year strategic program which is focused on three things

  • To maximize the revenue-generating opportunities – for which the group’s product range is enhanced
  • To make some changes to the technology platforms, allowing the group to launch multi-regional customer programs as seamlessly as possible and to work across both major payment schemes and non-payment schemes.
  • To accelerate the growth through direct investment – this will require spending $10-15 million over two years and other indirect investments what the group refer to as Finlabs.

FY21 1st Quarter update

The group posted a 51% increase in the GDV as compared to prior comparative period (PCP), whereas it is up by 20% relative to Q4 of FY20. This helped to drive up the revenue to $40.6 million, up 75% on the prior comparative period and 20% up on last quarter.

Image Source: EML Payments ASX’s Update

Image Source: EML Payments ASX’s Update

The EBITDA was reported at $10.05 million, an increase of massive 213% as compared to pcp. Q1 is historically the weakest quarter which demonstrates a positive start to the year.

The controlled initiatives reduced the cash overheads by $0.7 million over the pcp (excludes PFS). The cash overheads are in line with the top end of guidance between $64 million -$72 million.

Individual Segment Analysis for Q1FY21

The Gift and Incentive segment grew to $1.17 billion from $1.06 billion on a YoY basis. Healthy growth of 41% was seen on a quarterly basis for Q1FY21. Approximately 600 basis point yield increase was witnessed mainly because of improved trading in mall programs.

General Purpose Reloadable (GPR) has also seen a respectable growth post the acquisition of PFS, which led GDS and Gross profit move up by 24% from Q4 FY20. The older EML GPR segment saw a 16% growth due to higher volumes in gaming and Salary packaging.

Virtual Account Numbers (VANS) segment has been able to recover it’s GDV over the previous quarter and is at consistent yield.

Stock Performance

The share price of EML didn’t seem to reflect the enthusiasm amongst the investors and consequently saw a downtick of 4.86% to $3.04 (as at 3:09 PM). This is the sixth consecutive red session for the stock. The share price has fallen by 21% from its October high of $3.97. The YTD return stands at negative 33.9%.



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