Merchant credit, debit, and EFTPOS transactions fintech Tyro Payments [ASX:TYR] announced its push back into the profitability line earlier on Tuesday. TYR posted a statutory net profit of $1.1 million and positive free cash flow of $600 million.
The group was radiating elated to share its 40% increase in gross profit with record gross earnings of $19.5 million.
Transaction value increased 37% to $21.7 billion, and the group has reaffirmed its full-year guidance. The share price was trading flat on yesterday’s share price, at around $1.63 each.
And yet, for the first two months of 2023, the fintech has risen 15.5% in share price value, just above the wider market benchmark and well above its peers:
Source: tradingview.com
Tyro celebrates its return to profitability in 1H 2023
Tuesday morning saw fintech titan Tyro Payments proudly touting its record results, reflecting its performance for the first half of FY2023 and boosting the company back into profitable territory.
Tyro managed a 106% increase in its interim profit to $1.1 million, representing its first statutory profit in seven years.
The group reported its achievement, along with a positive free cash flow of $600 million and strong transaction value growth of 37% to $21.7 billion.
Tyro also hit a new record for EBITDA (earnings before interest, tax, depreciation, and amortisation) of $19.5 million, a 40% increase on the prior year’s first-half results.
The group’s operating leverage was 79.6%, down from 95.9% compared with the prior period.
Tyro was able to attain a better half-year result thanks to positive changes in external factors, such as the balancing environment post-pandemic restrictions and lockdowns, while also growing its merchant base and working off benefits to its cash-heavy system and upping earned interest through inflationary leverage.
Source: TYR
Jon Davey, Tyro’s CEO commented on the company’s key achievements over the past six months:
‘An increased focus on growth, cost management and delivery excellence has led to very pleasing first half results, including a record EBITDA and achieving positive free cash flow for the first time as a publicly listed company.
‘We have become a leaner and more disciplined organisation. Through our cost reduction program, we are on track to deliver an $11 million annualised cost saving. This has allowed us to streamline our operations and focus our investment to be the leading specialist payment and banking solutions provider for Australian business.’
The fintech has started the second half of FY23 with strong momentum, already seeing a 23% lift in transaction values from January through February — compared to the same time last year to $6.3 billion.
TYR’s banking business has also already generated $22.5 million in new loan originations, 30% up on this time last year.
The group delivered a gross profit of $15.4 million, an increase of 39%, for January alone — as well as an EBITDA of $3.6 million.
Tyro has reaffirmed its full-year guidance for all its key operations, including an EBITDA range of between $37–41 million, with a target operating leverage of 79%.
Source: TYR
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