(ASX, TYR) – TYRO H1 FY2022, Investor presentation (-28.22%)

Tyro this morning reported its first-half result for the 2022 financial year, booking record transaction value and revenue outcomes.

A 31% lift in transaction value was achieved, delivering a record 6-month of $15.8 billion processed from more than 61,500 merchants partnering with Tyro – an impressive accomplishment in a period punctuated by lockdowns that impacted many of Tyro’s merchants, particularly hospitality and retail merchants in NSW, Victoria and ACT. Tyro’s Alliance with Bendigo Bank generated significant momentum, contributing for a full six-months for the first time.

Tyro’s payments business performed strongly whilst still carrying the cost of actions designed to assist merchants as Covid lockdowns continued. This included the provision of terminal rental relief to Covid impacted merchants, and the deferral of pricing adjustments typically made annually to offset scheme/interchange fee changes. Tyro’s strong transaction value growth drove a 25% lift in statutory gross profit (to $68.1 million) for the Group’s payments business. After allowing for the gross profit share payable under the Bendigo Bank Alliance, the normalised gross profit lift for the payments business was 20% (to $65.0 million).

At a Group level (including Tyro’s banking business) statutory gross profit was up 16% to $71.2 million. A positive EBITDA result of $2.8 million was achieved and, whilst lower than the $8.5 million generated in H1 FY21, reflected continuing investment in growth initiatives including the recently announced exclusive partnership with Telstra, the absence of any JobKeeper benefits, wage inflation and first time costs associated with the newly acquired Medipass operation.

With Covid lockdowns abating and government actions in train to encourage a return of workers to the Nation’s CBDs, a positive bias for card present transactions in retail and hospitality is considered a likely feature in H2 FY22. Highlights from H1 FY22

• Record 61,554 merchants choosing Tyro as their payments solution – up 68% (H1 FY21: 36,720).
• Record $15.8 billion in transactions processed by Tyro Group merchants – up 31% (H1 FY21: $12.1 billion).
• Record payments revenue of $146.0 million – up 36% (H1 FY21: $107.7 million).
• Record payments statutory gross profit of $68.1 million – up 25% (H1 FY21: $54.3 million)
• Australia’s 5th largest merchant acquiring bank by terminal count – 103,935 terminals up 52.1% (H1 FY21: 68,338).
• Growing merchant deposits with total deposits of $100.8 million at 31 December 2021 (30 June 2021: $75.5 million).
• Rebound in merchant loan originations to $36.2 million – up 1,279% (H1FY21: $2.6 million).
• Low churn rates – merchant churn 10.1% + transaction value churn 9.0% (FY21: 11.3% + 8.7% respectively).
• EBITDA2 $2.8 million vs $8.5 million H1 FY21 – reflecting deferral of annual merchant pricing adjustments + no JobKeeper.
• Balance sheet strength with $157 million in total cash + financial investments (30 June 2021: $173 million).
• Total capital ratio 45% (30 June 2021: 73%).
• Appointed as Telstra’s exclusive partner offering merchant acquiring solutions to Telstra’s business customers.
• Tyro | Bendigo Bank Alliance tracking to expectations.
• Tyro Connect gaining traction – 17 industry leading apps signed + 274 active merchants + 14 POS partners.
• eCommerce continuing to scale – up 1,634% with $255.9 million in transactions processed (H1 FY21: $14.8 million).
• Medipass integrated with Tyro creating new unified health payments + claiming platform.

• https://www.uninformedinvestors.com/wp-content/uploads/2022/02/220221-ASX-TYR-FY22-HALF-YEAR-RESULT.pdf
• https://www.uninformedinvestors.com/wp-content/uploads/2022/02/220221-ASX-TYR-APPENDIX-4D-AND-INTERIM-Financial-Report.pdf
• https://www.uninformedinvestors.com/wp-content/uploads/2022/02/220221-ASX-TYR-APS330-Public-Disclosure.pdf
• https://www.uninformedinvestors.com/wp-content/uploads/2022/02/220221-AS-TYR-H1-FY22-INVESTOR-PRESENTATION.pdf