The Tyro Payments Ltd (ASX: TYR) share price is lifting off this morning, up 6% to $3.80 per share.
This follows on the ASX payment solutions company’s financial results for the year ending 30 June (FY21), released today.
Tyro share price boosted on record FY21 results
- Record $25.5 billion in transactions processed by Tyro merchants, an increase of 26% from $20.1 billion reported in FY20
- Revenue increased 13% year-on-year to $238.5 million
- Earnings before interest, taxes, depreciation and amortisation (EBITDA) of $14.2 million, compared to a $4.4 million loss in FY20
- Statutory net loss after tax of $29.8 million, compared to a net loss of $38.1 million in FY20
- $172.8 million in cash and financial investments on the balance sheet
What happened during the reporting period for Tyro Payments?
Tyro reported that its record high $25.5 billion in transactions in FY21 were processed on behalf of more than 58,000 merchants. The company’s gross profit hit an all-time high of $119.4 million.
The payments company managed to achieve this despite rolling COVID-19 lockdowns impairing many of its core customers, especially those in the retail, hospitality and health sectors.
As part of its growth strategy, Tyro acquired health fintech Medipass in May. In June it completed its merchant acquiring alliance with Bendigo Bank. This alliance has added some 18,500 Bendigo Bank merchants to Tyro’s merchant portfolio. The company estimates this will add an annualised transaction value of approximately $5 billion.
What did management say?
Commenting on the results, Tyro’s CEO, Robbie Cooke said:
We are executing against our strategy of ‘build’, ‘buy’, ‘invest’ and ‘partner’ as outlined in our 2019 prospectus prior to listing on the ASX and the business outcomes delivered in FY21 provide us with unique opportunities to accelerate growth.
Our combination with Medipass is a significant step in building out our core health vertical and is consistent with our strategy to extend our offering through acquisition where there is a distinct opportunity to gain scale and to enhance our position in a key vertical.
Our alliance with Bendigo Bank is an exciting combination of Australia’s fifth biggest retail bank with the fifth largest merchant acquiring bank. Partnering with Bendigo Bank sees Tyro’s leading proprietary payments platform made available to Bendigo Bank’s current and future business customers – giving them access to more features, more payment options and seamless integrations to more than 300 point of sale systems.
What’s next for Tyro Payments?
Looking ahead, the company said that future COVID-19 lockdowns remain unpredictable. However, it noted that it’s seen businesses rebound quickly over the past year whenever lockdowns lifted.
Tyro intends to continue rolling out new products and features to build out its payments platform.
According to Cooke, “Products such as the Tyro Go terminal will open up new verticals (trades and micro merchants for example) and provide a ‘queue busting’ solution for larger retailers.”
Tyro will also continue to pursue attractive acquisitions, large or small, Cooke said, to “gain scale, leverage our platform or capabilities, enhance our market position or supplement our ecosystem”.
The Tyro share price is up 17% over the past 12 months.