Tyro (ASX:TYR) shares trade higher on strong H1 results

3 min read | January 16, 2023 04:55 PM AEDT | By Aditi Sarkar

Tyro (ASX:TYR) shares trade higher on strong H1 results — Image source: © Ipopba | Megapixl.com

Major highlights shared by the company for the reported period included:

Payments transaction value up by 37% year-on-year to AU$21.7 billion. Similarly, payments normalised gross profits went up by 36%.
The company reported strong growth in the banking business with a 101% surge in loan originations to AU$72.7 million, while banking gross profit grew by 73%.
The company’s cost reduction program is moving ahead as planned, targeting a reduction in the annualised cost base of AU$11 million. It achieved an operating leverage of 80% for H1 FY23, down from 96% in the year-ago period.
The company stated that it is on track to reach positive free cash flow exiting FY23.
Tyro reported expedited delivery of automated onboarding, Tyro Pro next-generation terminal, Tyro Go reader, and other major strategic priorities.

Commenting on the results, the company’s CFO, Prav Pala said:

Improved guidance for FY23

The company has released an improved full-year guidance for all major operating metrics backed by strong H1 FY23 results.

The transaction value is now expected to fall in the range of AU$42.5 billion to AU$43.5 billion, up from the previous guidance of AU$40.0 billion to AU$42.0 billion for the period.

As per the company, this revised guidance will lead to an enhanced gross profit of between AU$187 million and AU$191 million and a targeted operating leverage of nearly 79%.

EBITDA is now expected between AU$37 million and AU$41 million at a target operating leverage of around 79%.

Tyro’s CEO Jon Davey also highlighted the company’s focus on a more disciplined approach to overseeing the profitability of its merchant portfolio. Based on a prediction for the remainder of FY23, the company will be targeting a full-year operating leverage of 79% or better, Davey added.

Tyro reported that it would be releasing its audited interim financial report on 28 February 2023.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.