EML Payments Posts Record FY21: Revenue Gains 60%

Tuesday, 17/08/2021 | 10:27 GMT by Arnab Shome
  • The company is now expecting to generate $220 million to $255 million in FY22.
EML Payments Posts Record FY21: Revenue Gains 60%
FM

EML Payments Limited (ASX: EML), a tailored payment solutions provider, reported $194.2 million in group revenue for the financial year ending on June 30, 2021. This was a 60 percent year-over-year jump from $121.6 million generated in FY20.

The revenue growth was accelerated by a 42 percent yearly increase in the group gross debit volume that came in at $19.7 billion at the closure of the last financial year.

The growth in the business also pushed the EBITDA of the company to touch $53.5 million, which is 65 percent higher than the previous year. The EBITDA came within a previously issued guidance range of $50 million to $54 million, while revenue surpassed the estimated range of $180 million to $190 million.

The company highlighted that it incurred a one-time cost of $11.4 million ‘associated with the Central Bank of Ireland (CBI) matter and headwinds in our global Gift & Incentive segment due to the ongoing impacts of COVID-19 related shopping mall closures in Europe, Canada and North America.’ Still, the statutory EBITDA came in 30 percent higher at $42.2 million.

EML’s services in open banking and payments also broadened last year with the acquisition of Sentenial. Additionally, the company also partnered with Frollo, a Sydney-based fintech firm, to launch the EML Nuapay product suite.

Bullish Future Projection

“As a result of our Accelerator strategy, we continue to see strong growth in new business, signing 121 more clients in FY21, with nearly 70% of these coming from our new growth verticals in GPR programs, which we project to generate approximately $2.7 billion at maturity, typically in years 3-4 post-launch,” the company added.

“We believe the growing demand for embedded, innovative and highly configurable payment solutions will drive further growth for the next 5 – 10 years.”

It also projected a bullish estimation for the ongoing year, expecting a gross debit value between $93 billion to $100 billion, out of which Sentenial is expected to generate $69 billion to $74 billion. Revenue is expected to be in the range of $220 million to $255 million, while EBITDA between $58 million and $65 million.

EML Payments Limited (ASX: EML), a tailored payment solutions provider, reported $194.2 million in group revenue for the financial year ending on June 30, 2021. This was a 60 percent year-over-year jump from $121.6 million generated in FY20.

The revenue growth was accelerated by a 42 percent yearly increase in the group gross debit volume that came in at $19.7 billion at the closure of the last financial year.

The growth in the business also pushed the EBITDA of the company to touch $53.5 million, which is 65 percent higher than the previous year. The EBITDA came within a previously issued guidance range of $50 million to $54 million, while revenue surpassed the estimated range of $180 million to $190 million.

The company highlighted that it incurred a one-time cost of $11.4 million ‘associated with the Central Bank of Ireland (CBI) matter and headwinds in our global Gift & Incentive segment due to the ongoing impacts of COVID-19 related shopping mall closures in Europe, Canada and North America.’ Still, the statutory EBITDA came in 30 percent higher at $42.2 million.

EML’s services in open banking and payments also broadened last year with the acquisition of Sentenial. Additionally, the company also partnered with Frollo, a Sydney-based fintech firm, to launch the EML Nuapay product suite.

Bullish Future Projection

“As a result of our Accelerator strategy, we continue to see strong growth in new business, signing 121 more clients in FY21, with nearly 70% of these coming from our new growth verticals in GPR programs, which we project to generate approximately $2.7 billion at maturity, typically in years 3-4 post-launch,” the company added.

“We believe the growing demand for embedded, innovative and highly configurable payment solutions will drive further growth for the next 5 – 10 years.”

It also projected a bullish estimation for the ongoing year, expecting a gross debit value between $93 billion to $100 billion, out of which Sentenial is expected to generate $69 billion to $74 billion. Revenue is expected to be in the range of $220 million to $255 million, while EBITDA between $58 million and $65 million.

About the Author: Arnab Shome
Arnab Shome
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About the Author: Arnab Shome
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
  • 6365 Articles
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