Tyro Payments shares rise as gross profit rises 34% in FY22


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The Tyro Payments Ltd (ASX:TYR) The stock price rose late Monday morning after the company released its fiscal 22 results.

As of this writing, shares of Tyro are trading up 7.5% at $1.075.

Tyro increases payments revenue by 39% in FY22

Key findings from the company’s results include:

  • Payments revenue of $318.8 million, up 39% from $229.2 million in FY21
  • Statutory gross profit from payments of $147.7 million, a 34% year-over-year gain
  • A total of 109,248 devices impacted in FY22, up 4%
  • Merchant loans reached $99.1 million, a staggering 283% year-over-year gain
  • Total merchant deposits of $83.3m as of June 30, 2022, compared to $75.5m in June FY21
  • Earnings before interest, taxes, depreciation and amortization (EBITDA) of $10.7 million compared to $14.2 million for the same period last year
  • After-tax statutory loss of $29.6 million, down slightly from $29.8 million in FY21
  • Ended FY22 with a total of $123 million in cash and financial investments

What else happened the last period for Tyro?

Tyro says its collaboration with Bendigo Bank generated more than $5.2 billion in transaction value in its first full year of operation.

The company has also been appointed as the exclusive partner of Telstra Company Ltd. (ASX: TLS) offering merchant acquiring solutions to the telecommunications giant’s business customers.

Management has also been active on cost management, reducing headcount and increasing its merchant service fee in H2 FY22.

Additionally, online sales generation accounted for 1.5% of transaction value. This created approximately $520 million in processed transactions, up from $70 million in FY21.

Management commentary

Speaking on the results which send Tyro shares skyward today, CEO and Managing Director Robbie Cooke said:

Despite the challenges of 2022 with Covid, tight labor markets, payment company downgrades and inflationary pressures – we have responded strongly with targeted cost management, tight margin management and a continued focus on service to our customers while offering new products and services to our merchants.

These actions began to make a positive contribution in the last quarter of the year and remain a key driver of FY23. They should drive further improvements in operating leverage alongside our continued focus on delivering strong growth. turnover and the acquisition of new merchants.

What’s next for Tyro?

The company says it’s already off to a strong start for FY23. While July deal values ​​rose 46% year-over-year to $3.4 billion, August values ​​also rose. increased 70% from FY22 to $2.9 billion.

Tyro forecasts a transaction value of between $40 billion and $42 billion, which will result in a normalized gross profit of between $175 million and $185 million.

It is also targeting a positive free cash flow “out of FY23”.

Tyro Share Price Overview

Over the past 12 months, Tyro shares have fallen 71%.


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