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EML Payments


AU$1830.9m market cap

AU$5.06 last close

EML Payments is a payment solutions company specialising in the prepaid stored value market, with mobile, physical and virtual card offerings. It manages thousands of programmes across 28 countries in Europe, North America and Australia.

Investment summary

EML Payments reported robust H121 results, with gross debit volume growth of 54%, revenue growth of 61% and NPATA growth of 30% y-o-y. The GPR division, which post the PFS acquisition now makes up 57% of group revenue, saw strong organic growth in H1, compensating for the lower volumes experienced in the malls segment of the G&I division. Management has reinstated guidance for FY21 and we have upgraded our forecasts to reflect the more positive outlook. We remain conservatively at the lower end of the guidance range, while upgrading FY21 revenue by 5.0%, EBITDA by 3.3% and NPATA by 9.1%.

Y/E Jun
Revenue (A$m)
PBT (A$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2019A 97.2 29.7 25.6 7.8 64.9 N/A
2020A 121.0 32.5 21.6 5.5 92.0 N/A
2021E 182.2 50.1 34.7 7.5 67.5 N/A
2022E 226.3 70.7 52.4 11.3 44.8 N/A
Industry outlook

In terms of market size, US$1,848bn was loaded onto prepaid cards in 2019 and this is forecast to grow to US$5,511bn by 2027, a CAGR of 14.6% (source: Applied Market Research). EML is keen to gain share of this fast growing market, and as part of its Project Accelerator strategy to position the company at the forefront of payment-related technology, has made its first two investments via its FinLabs incubator.

Last updated on 04/03/2021
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Share price graph
Balance sheet
Forecast net debt (A$m) 0
Forecast gearing ratio (%) 0
Price performance
Actual 28.1 31.4 53.8
Relative* 28.8 28.9 40.6
52-week high/low A$5.2/A$1.3
*% relative to local index
Key management
Robert Shore Group CFO
Tom Cregan MD and CEO

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