Revenues Rise YoY for EML Payments, but Profit Drops Slightly

EML Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term Limited (ASX:EML), a tailored payment solutions provider, has published its 2020 Annual Report for the twelve months ended on 30th June 2020, revealing that it has achieved record revenue for the period.

Listed on the Australian Securities Exchange (ASX), EML Payments reported today that it achieved revenue of $121.6 million. Against the previous year, this is stronger by 25 per cent. According to the report, revenue growth was evident across each of its segments.

Gross Debit Volume (GDV) for the payments company came in at $13.9 million for the 12 month period. This is greater than the previous year by 54 per cent. GDV represents the debit volume processed by the Group through its platforms. According to the company, GDV is a proxy indicator of customer demand for its payment services.

In terms of Virtual Account Numbers (VANs), the company’s segment in North America saw 62 per cent increase in GDV year on year, reaching $8.47 billion. This was driven by organic growth in existing customers.

However, ELM Payments did highlight that its volumes during the year were negatively impacted by the Coronavirus Coronavirus The outbreak of Covid-19 or Coronavirus in early 2020 has since redefined the financial services industry. Brokers have been forced to quickly adapt to several changes, both positive and negative.This includes the FX industry, which saw surges in volumes across the retail and institutional space in Q1 2020. This trend can be explained by an outflow of volatility, coupled with countries taking major moves to stabilize their respective economies.In conjunction with uncertainty caused by the virus, The outbreak of Covid-19 or Coronavirus in early 2020 has since redefined the financial services industry. Brokers have been forced to quickly adapt to several changes, both positive and negative.This includes the FX industry, which saw surges in volumes across the retail and institutional space in Q1 2020. This trend can be explained by an outflow of volatility, coupled with countries taking major moves to stabilize their respective economies.In conjunction with uncertainty caused by the virus, Read this Term pandemic. This is because social distancing and lockdowns reduced spending on the health industry.

Gross Profit Falls YoY for EML Payments

For the year ended on 30th June 2020, EML Payments generated a gross profit margin of 73.0 per cent. Unlike revenues and volume, this is actually lower by 2.1 per cent when measured against the previous year.

“Gross profit margins vary across the three segments, with our G&I segment generating 82.4% gross profit margins, and 64.8% for our VANs segment,” the payments company said in its report.

“In the GPR segment our blended average gross margin was 59.7%, reflective of EML programs such as salary packaging being higher transactional use programs, and margins on PFS managed GPR programs where margins are lower because of third party processing costs.”