Good news for Smartpay Holdings today. The company announced that it has signed an agreement with Alipay, China’s largest online and mobile payments provider. Under the agreement, Smartpay will directly acquire Alipay transactions, giving approximately 25,000 merchants access to an estimated $11 billion in Chinese tourist spending across Australia & New Zealand. As the direct acquirer of Alipay transactions, Smartpay will earn a share of total transaction value…
that doesn’t get a mention in latest update, but there again, what tourists??
SMP designs, develops and implements innovative Point-of-Sale (PoS) payment solutions for customers in Australia and New Zealand including banks, retailers and merchant businesses. The products include Voice Over IP, Broadband, EFTPOS terminals, secure EFTPOS internet connectivity, audio and video, music, messaging, prepayment products and transactional processing services for the taxi industry.
Held a Capital Raise of $15m completed June 2020:
• Competed at market (no discount), significantly oversubscribed.
Australian acquiring terminal fleet grew to 4,613 as at 31 March 2020
• Full year deployment target of 2,500 new terminals achieved
Hard gig to run with, getting terminals into Point of Sale; because I suspect ‘lead generation’ and tech spend would be a constant. At least, Terminals and Revenue seem to move in lockstep.
Naos Ex-50 (NEC) had a few words about it in their monthly:
“Smartpay Holdings released their FY20 results as they have a financial year-end of 31 March. SMP operate in two geographies, being New Zealand and Australia. The New Zealand business is mature and stable but low growth, and therefore it is SMP’s Australian business that is capturing investor’s attention given the impressive growth it has shown to date.
“When reviewing the KPIs of SMP Australia in the full-year results, the majority of these showed significant progress despite the COVID-19 disruption that occurred in the final month of SMP’s financial year. The Australian acquiring revenue grew to $9.50 million from $2.50 million in the prior year, and revenue per terminal continues to increase significantly even as the number of terminals increases.
“Looking forward, SMP are experiencing record lead generation and they are well placed to accelerate their growth trajectory in new terminal numbers having recently raised equity capital to strengthen their balance sheet.”
Market cap $50m. Sales increasing … but with the growth, discipline needed. And less debt.
……………………….Earnings ……………………………Return on Equity……………….