ASX 200 falls, Tyro (ASX:TYR) up on merchant deal

The S&P/ASX 200 Index (ASX:XJO) dropped by 0.5% today. But the Tyro Payments Ltd (ASX:TYR) share price went up on a merchant deal.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The S&P/ASX 200 Index (ASX: XJO) went down by 0.5% today to 6,177 points.

Here are some of the highlights from the ASX today:

Tyro Payments Ltd (ASX: TYR)

The Tyro share price went up by 5.4% today after the payments business announced a merchant deal.

Tyro announced that it's partnering with Bendigo and Adelaide Bank Ltd (ASX: BEN) to create a long-term merchant acquiring alliance.

As a result of the deal, Tyro expects to deploy more than 26,000 Tyro terminals in 2021 for the alliance, increasing its terminal fleet to just over 89,000 terminals.

Tyro will exclusively provide merchant acquiring services to Bendigo Bank's existing merchant acquiring customers and Bendigo Bank will exclusively refer new merchant opportunities from its business customer base to Tyro, under a joint brand.

Economic benefits of Bendigo Bank's existing merchant service contracts will move to Tyro on completion, which is expected in the first half of the calendar year. Tyro is buying Bendigo Bank's merchant service contracts and associated goodwill.

Tyro will pay Bendigo Bank $9 million upfront. Bendigo Bank there will also get an on-going gross profit share from existing and newly referring Bendigo Bank business customers who use Tyro's merchant acquiring services.

This alliance between the two ASX 200 shares has an initial 10-year term with provisions for extensions by agreement for additional five-year terms. If the alliance expires, all Bendigo Bank transferred and referred customers will remain with Tyro, with Bendigo Bank's gross profit share to continue while those customers are served by Tyro.

Tyro said there are a few costs relating to implementing this alliance. There will be a one-off project resourcing cost of $3.8 million. There will also be other one-off project costs, including terminals, of $16.1 million. Finally, there will be ongoing additional personnel costs to support the alliance, which is expected to be around $6.7 million per annum.

The ASX 200 payments business is expecting that Bendigo Bank's business customers will generate around $5 billion in transaction value in FY22. Tyro's gross profit share (after the gross profit share to Bendigo Bank and before operating costs) from the Bendigo Bank cohort will be approximately $19 million in FY22.

The Bendigo Bank share price went up by 2.8% today.

Rio Tinto Ltd (ASX: RIO)

The ASX 200 mining giant announced its FY20 third quarter production results today.

Compared to the second quarter, iron ore shipments were down 5% to 82.1Mt, though production was up 4% to 86.4Mt. Bauxite production was down 1%, aluminium production was up 2%, mined copper was down 2% and production of pellets and concentrate at Iron Ore Company of Canada (IOC) was 21% lower due to an annual maintenance shutdown as well as a weather related power failure and mechanical issues also impacting production.

Rio Tinto CEO J-S Jacques said: "Rio Tinto has shown great resilience through challenging conditions and will continue to prioritise the health and safety of our employees, contractors and communities. The quality of our assets, coupled with our strong focus on capital discipline and value over volume approach, mean we can continue to invest in our business, support our communities, pay taxes and royalties to host governments and continue to generate superior returns to shareholders in the short, medium and long term."

Aussie Broadband Pty Ltd (ASX: ABB)

Telecommunications business Aussie Broadband listed onto the ASX today. It had an amazing debut.

The Aussie Broadband share price almost doubled from its $1 listing price, finishing with a share price of $1.91.

Next Monday could be another very volatile day for the telco ASX share.

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Tyro Payments. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Broker written in white with a man drawing a yellow underline.
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

Man holding Australian dollar notes, symbolising dividends.
Dividend Investing

Want to build up passive income? These 2 ASX dividend shares are a buy!

These stocks are giving investors exciting payouts every year.

Read more »

Man on a ladder drawing an increasing line on a chalk board symbolising a rising share price.
Growth Shares

2 ASX shares to buy and hold for the next decade

These businesses have a lot of growth potential ahead…

Read more »

Three satisfied miners with their arms crossed looking at the camera proudly
Materials Shares

ASX 200 materials sector outperforms as mining shares continue their ascent

Plenty of ASX 200 mining shares hit multi-year highs last week amid continually rising commodity values.

Read more »

A group of people push and shove through the doors of a store, trying to beat the crowd.
Broker Notes

2 ASX shares highly recommended to buy: Experts

Are these two stocks the best buys on the ASX?

Read more »

Smiling couple sitting on a couch with laptops fist pump each other.
Broker Notes

These ASX 200 shares could rise 20% to 55%

Brokers have good things to say about these shares.

Read more »

Australian dollar notes in the pocket of a man's jeans, symbolising dividends.
Dividend Investing

I'd buy 5,883 shares of this ASX stock to aim for $1,000 of annual passive income

I’d pick this stock for its strong dividend record.

Read more »

A player pounces on the ball in the scoring zone of the field.
Best Shares

4 ASX 300 shares that ripped 100% or more in 2025

The S&P/ASX 300 Index rose 7.17% and delivered a total return, including dividends, of 10.66% in 2025.

Read more »