Revenues Rise YoY for EML Payments, but Profit Drops Slightly

The coronavirus pandemic limited spending among clients.

EML Payments 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.

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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.

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However, ELM Payments did highlight that its volumes during the year were negatively impacted by the coronavirus 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.”

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