Full Year 2025 Cuscal Ltd Earnings Call Transcript
Key Points
- Cuscal Ltd (ASX:CCL) successfully exceeded its FY25 prospectus forecasts, demonstrating strong earnings growth across all core capabilities.
- The company declared a fully franked FY25 final dividend of $0.055 per share, aligning with its prospectus forecast, resulting in total dividends of $0.10 per share for the year.
- Cuscal Ltd (ASX:CCL) announced a strategic acquisition of Indue, expected to generate material synergies and enhance the company's resilience and sustainability in the payments business.
- The acquisition of Indue is anticipated to result in a combined entity with a strong common equity tier one position of around 18% to 19%, above regulatory minimums.
- Cuscal Ltd (ASX:CCL) reported a 13% increase in adjusted EBITDA and a 17% rise in pro forma net profit after tax (NPAT), showcasing robust financial performance.
- The acquisition of Indue involves non-recurring integration costs projected to be between $25 million to $30 million after tax, which will be incurred over a three-year period.
- Cuscal Ltd (ASX:CCL) experienced a 3% decline in client deposits, attributed to timing-related factors.
- The company's acquiring transaction volume growth of 11% was lower than the 17% prospectus forecast due to client-specific delays.
- Operating expenses were impacted by slower than planned ramp-up in employment expenses, offset by higher technology and risk uplift costs.
- Cuscal Ltd (ASX:CCL) faces challenges in integrating Indue's systems, which will require building connection layers to periphery systems and managing vendor contract timelines.
Good morning, everyone, and thanks for joining us today for the announcement of Cusco's FY25 full year results. I'm Craig Kennedy, managing director of Cusco, and I'm joined today by our CFO, Sean O'Donoghue.
Today we're also pleased to announce the strategic acquisition of Indue. Before we begin, I would like to acknowledge the traditional custodians of the land on which we gather today, the Gadigal people of the Eora nation, and pay my respects to their elders, past, present, and emerging. I extend that respect to all First Nations people joining us today.
Today, I'll touch on some highlights from the last 12 months before taking you through the Indue acquisition and why we're enthusiastic about the combination of Cusco and Indue. Sean will then review the FY25 financial performance in a little more detail, and I will then cover the outlook for FY26 before opening for questions.
Turning to slide 6, we've made a solid start to life as a listed company following our successful IPO on the 25th of November 2024.
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