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 provides payment solutions for banking, credit and disbursement services, earned wage access, gifts, incentives and rewards, and open banking and FX. The company estimates it has a serviceable addressable market worth A$114bn, which is growing at c 7% pa. It estimates it has less than a 0.2% share of this market, providing plenty of scope for growth.
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Jonathan Gatt
Group CFO
Kevin Murphy
Interim CEO
Forecast net debt (A$m)
28.7
Forecast gearing ratio (%)
17
% | 1M | 3M | 12M |
---|---|---|---|
Actual | (30.0) | (21.4) | 13.2 |
Relative | (32.2) | (19.6) | 16.3 |
52 week high/low | A$1.3/A$0.4 |
EML Payments reported FY23 revenue and underlying EBITDA ahead of the top-end of its guidance range, benefiting from higher interest income and improvements to customer contracts in H223. The company is making good progress with its short-term priorities, and while the Barrenjoey strategic review is ongoing, management has started taking action to return loss-making activities to profitability and to reinvigorate growth in its core businesses. We have upgraded our forecasts to reflect better-than-expected performance in FY23 and identified cost savings.
Y/E Jun | Revenue (A$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 | 22.7 | 8.6 |
2023A | 254.2 | (2.6) | (22.8) | (4.869) | N/A | N/A |
2024E | 277.8 | 35.4 | 13.6 | 2.833 | 27.2 | 8.1 |
2025E | 302.7 | 56.3 | 32.9 | 6.869 | 11.2 | 5.1 |