EML Payments Posts Record FY21: Revenue Gains 60%

EML Payments Limited (ASX: EML), a tailored payment solutions provider, reported $194.2 million in group revenue for the financial year ending on June 30, 2021. This was a 60 percent year-over-year jump from $121.6 million generated in FY20.

The revenue growth was accelerated by a 42 percent yearly increase in the group gross debit volume that came in at $19.7 billion at the closure of the last financial year.

The growth in the business also pushed the EBITDA of the company to touch $53.5 million, which is 65 percent higher than the previous year. The EBITDA came within a previously issued guidance range of $50 million to $54 million, while revenue surpassed the estimated range of $180 million to $190 million.

The company highlighted that it incurred a one-time cost of $11.4 million ‘associated with the Central Bank of Ireland (CBI) matter and headwinds in our global Gift & Incentive segment due to the ongoing impacts of COVID-19 related shopping mall closures in Europe, Canada and North America.’ Still, the statutory EBITDA came in 30 percent higher at $42.2 million.

EML’s services in open banking and payments also broadened last year with the acquisition of Sentenial. Additionally, the company also partnered with Frollo, a Sydney-based fintech firm, to launch the EML Nuapay product suite.

Bullish Future Projection

“As a result of our Accelerator strategy, we continue to see strong growth in new business, signing 121 more clients in FY21, with nearly 70% of these coming from our new growth verticals in GPR programs, which we project to generate approximately $2.7 billion at maturity, typically in years 3-4 post-launch,” the company added.

“We believe the growing demand for embedded, innovative and highly configurable payment solutions will drive further growth for the next 5 – 10 years.”

It also projected a bullish estimation for the ongoing year, expecting a gross debit value between $93 billion to $100 billion, out of which Sentenial is expected to generate $69 billion to $74 billion. Revenue is expected to be in the range of $220 million to $255 million, while EBITDA between $58 million and $65 million.