EML Payments Ltd (ASX: EML), formerly Emerchants Ltd, is an Australian based payment technology firm focused on providing online payment processes and solutions to businesses. The company is a rapidly growing name in the payment services and fintech sector and participates globally across North America, Europe, and Australia managing some 1,100 payment and loyalty based programs across these three continents. EML payments specialise in providing payment solutions for corporate brands, offering payment technology for gifts, incentives, and reward programs through its in-house mobile, virtual, and physical card system.
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The firm boasts a competitive advantage over conventional banking channels through faster withdrawal capabilities representing greater profit margins for their associated partners. EML payments operate broadly in this sector managing programs across MasterCard and Visa, as well as digital platforms such as Apple Pay and Samsung Pay. The company cites gaming, salary packaging, as well as gifts and incentives as it’s predominant growth drivers. EML Payments Ltd (ASX:EML) is currently trading at $4.29 per share with a market cap of $1.1 billion, 286% growth since year-to-date.
Business Updates and FY19 Financial Results
One of the primary drivers behind EML Payments considerable growth in 2019 comes from investor interest in the company following strong indications of fiscal growth in its FY2019 report. Revenue was reported at $97.2 million and EBITDA at $29.1 million, representing a rise of 37% and 40% respectively over the previous FY18. Both indicators also reportedly exceeded guidance ranges, adding onto the positive outlook and momentum for EML Payment’s FY20 results. The report also cites it’s planned entrance into the North American sports betting market with Pointsbet and bet365 as growth drivers for the foreseeable five to ten-year period.
EML Payments has delivered sound results in FY19 and has plans to grow rapidly in large addressable markets for the foreseeable future. The firm predicts further profit growth from its entrance into the North American gaming market as well as organically through existing programs. It cites these primary growth drivers as expanding markets that are changing with consumer preferences and consequently seeks to innovate and simplify in order to drive success. Further, the FY19 result highlights acquisitions into reward programs are being executed on, and that revenue divisions are moving towards greater divisional balance to avoid reliance on any particular driver.
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