EML Payments - Edison Group

Overview
Price performance
Financials
Research
Thematics

EML Payments is a payment solutions company managing thousands of programmes across 32 countries in Europe, North America and Australia. It provides payment solutions for banking, credit and disbursement services, earned wage access, gifts, incentives and rewards, and open banking and FX.

EML estimates it has a serviceable addressable market worth A$114bn, which is growing at c 7% pa. It estimates it has less than a 0.2% share of this market, providing plenty of scope for growth.

Latest Insights

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TMT |
Flash note

25.04.24

EML Payments — Growth cap lifted in the UK

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Update

12.04.24

EML Payments — Cutting the final link to PFS vendors

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Flash note

18.03.24

EML Payments — Sale of Sentenial agreed

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Update

05.03.24

EML Payments — Looking to a brighter future

Sector

TMT

Equity Analyst

Katherine Thompson

Katherine Thompson

Director

Key Management

Jonathan Gatt

Group CFO
Kevin Murphy

Interim CEO

Balance Sheet

Forecast net debt (A$m)

11.7

Forecast gearing ratio (%)

6

Share Price Performance

Price Performance
%	1M	3M	12M
Actual	(17.5)	20.0	43.5
Relative	(14.4)	21.3	36.4
52 week high/low	A$1.3/A$0.6

Financials

On 14 March, EML Payments agreed to sell Sentenial to GoCardless for an enterprise value of €32.75m/A$54.1m, subject to regulatory approval. On 11 April, EML announced that it had entered into an agreement to settle all the outstanding deferred consideration payments relating to the acquisition of Prepaid Financial Services Group (PFS) for £15.0m/A$28.8m, which represents a £7.9m/A$15.2m discount to the originally agreed amount. This agreement concludes all outstanding actual and potential liabilities relating to the PFS acquisition in 2020. On 23 April, the Financial Conduct Authority lifted the cap on new customers for PFS Limited. These measures substantially strengthen EML’s balance sheet, simplify the group structure and enable the company to focus on profitable growth.

Y/E Jun	Revenue (A$m)	EBITDA (A$m)	PBT (A$m)	EPS (fd) (c)	P/E (x)	P/CF (x)
2022A	232.4	34.3	16.0	3.398	29.1	11.0
2023A	254.2	(2.6)	(22.8)	(4.869)	N/A	N/A
2024E	262.1	49.7	27.5	5.736	17.3	7.4
2025E	238.0	62.5	41.4	8.610	11.5	5.9

Research

Update

TMT

15.11.22

EML Payments — Irish regulator extends growth cap

Flash note

TMT

01.11.22

EML Payments — UK regulator raises concerns

TMT

Update

EML Payments — New three-year plan to transform the business

Update

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09.09.22

EML Payments — Strategic review for sustainable growth

Flash note

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30.08.22

EML Payments — New CEO launches strategic review

Flash note

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25.07.22

EML Payments — More work to do in Europe

Update

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07.07.22

EML Payments — Prepaid card contract win in Spain

Update

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03.05.22

EML Payments — Weaker European business drives downgrades

Update

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01.03.22

EML Payments — Improving outlook

Flash note

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26.11.21

EML Payments — Making progress with the Irish regulator

Update

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18.11.21

EML Payments — Reassuring Q1 update

Flash note

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30.09.21

EML Payments — Bringing Sentenial into the fold

Update

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20.08.21

EML Payments — Moving forward

Update

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14.06.21

EML Payments — Update on Q3 trading and regulation

Update

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20.05.21

EML Payments — Irish regulator raises issues

Update

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14.04.21

EML Payments — Open sesame

Update

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19.02.21

EML Payments — Showing the benefits of diversification

edison tv

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17.02.21

EML Payments – executive interview

Initiation

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21.10.20

EML Payments — Storing up value

edison tv

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09.07.20

EML Payments – executive interview

QuickView

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17.06.19

EML Payments — Creating value from stored value

thematic

TMT

28.07.23

MediaWatch – Targeting the opportunities

thematic

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25.04.23

MediaWatch – Vision On

Digital Marketing and Internet Media Technology Platform

thematic

TMT

31.01.23

MediaWatch – Screening well

thematic

Consumer

05.10.22

IPO apocalypse

thematic

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10.08.22

ESG, moving beyond the box tick

thematic

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11.05.22

Direct tech investors

thematic

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24.03.22

Circular economy business models

thematic

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Quantum dots – all the colours of the rainbow

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Micro-LEDs – small is beautiful

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08.04.20

European video games: A safe haven in troubled times

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27.02.20

Blockchain adoption: Implications for the financial services sector

thematic

Consumer

14.08.19

Illuminator: August Update

thematic

TMT

05.08.19

European video games

thematic

TMT

10.07.19

Diversification and scale for online success

thematic

TMT

08.05.19

5G – Strategic importance, but lacking a near-term commercial driver

thematic

TMT

26.02.19

UK video games – Heterogeneous not homogeneous

thematic

TMT

24.02.17

Mobile ecosystems

thematic

TMT

08.02.17

Mobile ecosystems

thematic

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13.10.15

Mobile ecosystems

thematic

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23.03.15

NZ – Edison talks tech

thematic

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23.03.15

AUS – Edison talks tech

thematic

TMT

18.03.15

Mobile ecosystems

thematic

Consumer

11.11.14

Deutsche Börse Eigenkapitalforum 2014 Research Guide

thematic

TMT

15.10.14

Mobile ecosystems

thematic

Energy & Resources

04.03.14

ASX Spotlight Conference – London, 6 March 2014

thematic

Energy & Resources

01.03.13

ASX Small to Mid Caps Conference – London, 7 March 2013

thematic

TMT

24.09.10

The third pillar

thematic

TMT

10.09.10

The real disruptor

thematic

TMT

27.08.10

Merger mania is back