Its been a long, drawn-out recovery story for the Tyro Payments Ltd (ASX: TYR) share price. The company’s shares delivered a classic ‘V-shaped’ recovery after the brutal March 2020 selloff, but have not quite managed to break above their pre-COVID highs.
Just as things appeared to be settling somewhat, the company was hit with a significant EFTPOS terminal outage in early January that resulted in many of its small business customers being unable to process card payments.
In more bad news for investors today, the Tyro share price is slipping 2.04% to $3.83 after the company released its weekly COVID-19 trading update.
Tyro shares slip despite surge in transaction value
Tyro today advised that transaction values from May to 28 May (date-on-date) had increased 84% to $2.116 billion compared to $1.148 billion for the same period in FY20. Despite the significant face-value increase, it is worth noting that these figures are coming off a low, lockdown-induced base from last year.
Year-to-date transaction values, which were also heavily impacted by the pandemic in 2020, are currently up 24% compared to the prior corresponding period.
What about Victoria’s lockdown?
Victoria is currently enduring another week-long lockdown due to end at 11:59 pm on Thursday 3 June.
According to Tyro’s FY21 first-half results, health, hospitality and retail verticals represent 86% of its merchant count and process 91% of its total transaction value. More specifically, health, hospitality and retail account for a respective 11%, 43% and 37% of the company’s total transaction values.
From a transaction value perspective, 39% is derived from New South Wales, Queensland delivers 23%, Victoria 18% and Western Australia 11%. Less than 5% of Tyro’s transaction value is generated by South Australia, Tasmania, ACT and the Northern Territory.
Despite Victoria accounting for less than a fifth of its overall total transaction values, Tyro’s half-year results reported that the state’s “lockdowns significantly impacted performance”. However, it is worth noting that Victoria experienced a prolonged second lockdown between June through to late October last year.
The Tyro share price hardly flinched on Victoria’s lockdown announcement last week. As a matter of fact, its shares managed to finish the week 3.7% higher at $3.91.
Given Tyro’s transparent approach to reporting the impacts of the pandemic on its business, investors will be able to see the impact of Victoria’s lockdown in next week’s COVID-19 trading update.
While the Tyro share price is sliding on Monday, for context, the broader tech sector is also having a lacklustre day. At the time of writing, the S&P/ASX 200 Info Tech Index (ASX: XIJ) is trading 0.78% lower for the day so far.