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 quotes a total addressable market for prepaid cards of $1.8tn with a CAGR of c 18% from 2023 to 2030. With gross debit volume of A$9.6bn from prepaid cards in FY24, EML is well positioned to benefit from market growth as well as market share gains.

Latest Insights

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TMT |
Update

06.09.24

EML Payments — Back to basics

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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

Sector

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Equity Analyst

Katherine Thompson

Katherine Thompson

Director

Key Management

Anthony Hynes

Chairman
Jonathan Gatt

Group CFO
Kevin Murphy

NED
Ron Hynes

CEO

Balance Sheet

Forecast net cash (A$m)

37.6

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
%	1M	3M	12M
Actual	8.1	(26.1)	(39.8)
Relative	7.3	(28.3)	(49.8)
52 week high/low	A$1.3/A$0.6

Financials

EML Payments’ FY24 results were the first to show the full impact of the liquidation of PFS Card Services Ireland Limited (PCSIL). Continuing operations, which exclude PCSIL, saw gross debit volume (GDV) growth of 18%, revenue growth of 18% and underlying EBITDA growth of 34%. The sale of Sentenial has since completed with proceeds of A$53.4m, moving EML to a net cash position. Management is now focused on moving back to a growth mindset in the remaining business and optimising the cost base post the disposals. Shifting away from the medium-term targets given in February, management expects to disclose more at its AGM in November. We have reduced our FY25 forecasts to reflect the more modest EBITDA guidance and to remove the Sentenial business.

Y/E Jun	Revenue (A$m)	EBITDA (A$m)	PBT (A$m)	EPS (fd) (c)	P/E (x)	P/CF (x)
2023A	183.9	8.6	(9.6)	(2.05)	N/A	27.9
2024A	217.3	38.1	16.6	3.43	19.4	6.5
2025E	208.9	54.8	35.0	7.21	9.2	4.6
2026E	217.0	58.5	42.5	8.76	7.6	4.3

Research

Update

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09.12.22

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

Update

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15.11.22

EML Payments — Irish regulator extends growth cap

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Update

EML Payments — Considering its options

Flash note

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01.11.22

EML Payments — UK regulator raises concerns

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

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21.11.23

Deutsches Eigenkapitalforum (EKF) 2023 technology

thematic

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07.11.23

MediaWatch – Still waiting…

thematic

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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

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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

Consumer

24.03.22

Circular economy business models

thematic

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29.09.21

Quantum dots – all the colours of the rainbow

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09.09.21

Micro-LEDs – small is beautiful

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16.08.20

Semiconductor winners – European companies with strong positions

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24.06.20

The small satellite market – 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

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05.08.19

European video games

thematic

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10.07.19

Diversification and scale for online success

thematic

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08.05.19

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

thematic

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26.02.19

UK video games – Heterogeneous not homogeneous

thematic

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24.02.17

Mobile ecosystems

thematic

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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

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18.03.15

Mobile ecosystems

thematic

Consumer

11.11.14

Deutsche Börse Eigenkapitalforum 2014 Research Guide

thematic

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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

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10.09.10

The real disruptor

thematic

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27.08.10

Merger mania is back