Half Year 2025 EML Payments Ltd Earnings Call Transcript
Key Points
- Revenue increased by 15% year-over-year to $115.1 million, with customer revenue up 6% to $82.3 million.
- Underlying EBITDA improved by 50% to $33.4 million, and net profit after tax (NPAT) turned positive at $9.5 million from a previous loss.
- The company has made significant progress on its EML 2.0 strategy, focusing on a global operating model, revenue engine revival, and a single technology platform.
- Interest income increased by 49% due to higher bond returns and treasury management activities.
- The cash balance improved by $7.5 million, reflecting positive operating cash flows and strategic actions like the sale of Centennial.
- The loss of several customers in the second half of FY24 suppressed customer revenue growth.
- North American revenue was down 7% due to lower breakage revenue across incentive customers.
- Interest rates are expected to moderate further, potentially impacting future interest income.
- The company is still in the early phases of its EML 2.0 strategy, indicating that full benefits may take time to materialize.
- Operating cash flow conversion was below the long-term average, impacted by timing differences in bond interest income.
Thank you and good morning, everyone. Welcome to the AML Payments Limited FY25 1st half results teleca.
I'm Anthony Hynes, Executive Chairman. It's great to be here with our CFO James Jorgeson to report our interim results for FY25.
And provide an update on EML 2.0 progress.
Following our presentation, we'll open the call to questions.
I'll refer you to the ASX announcements which were issued by EML Payments Limited this morning, which formed the basis for this call.
So let's kick off and we'll move to slide 4.
The first half of FI25 saw the company largely emerge from its structural challenges of the last three years and turned its focus to industrializing the business and recapturing a growth mindset, which really has been missing for some time.
Whilst there was an unplanned leadership change during the period, energy and momentum is high, and a more productive operating cadence is in place today, courtesy of a settled and capable leadership team and board.
I'll touch on
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