Ann: TSN Business Update, page-28

Great update today.

Here's my summary...

First to TSI India.

Here's what I have for the 1st quarter FY 17-18 give or take.

* 1,400,000 transactions per day over 30 days = 42,000,000 transactions for April.
* 1,300,000 transactions per day over 30 days = 39,000,000 transactions for May.
* 1,420,000 transactions per day over 30 days = 42,600,000 transactions for June.

Ok so the approximate number of transactions for the first quarter of the Indian financial year = 123,600,000.

We know from the annual Report that TSI India are managing and operating 14,346 ATMs, but what we don't know is how many of those ATMs are 'live and active' and have been during this seven months of turmoil. Was it 11,000 ATMs, 12,000 ATMs or less? This will paint a completely different picture metric wise. Excellent result considering what has taken place with new government policy changes. Why do I believe this to be so?

Just as a comparison, for the financial year FY-16-17 transaction volumes were...

Q1-FY-16-17 - 122m transactions.

TSI India's billed revenue data showed approximately 590,000,000 INR, which was equivalent to approximately A$11,609,831.20 at conversion rate at the time for the first quarter.

Q2-FY-16-17 - 130m transactions.

TSI India billed revenue data showed approximately 606,000,000 INR, which was equivalent to approximately A$12,000,000 at conversion rate at the time for the second quarter.

http://www.asx.com.au/asxpdf/20161111/pdf/43ctfkyw4qsvtl.pdf

Q3-FY-16-17 - 127m transactions.

http://www.asx.com.au/asxpdf/20170202/pdf/43fr2w4bsqsww0.pdf

Q4-FY-16-17 - 120m transactions.

The announcement dated 01/05/17 below highlights that Revenue Data for Q4 sits approximately around INR 570m mark (refer to graph in today's announcement), which converted to approximately AUD$11.86m at conversion rate at the time.

https://hotcopper.com.au/threads/an...update.3393783/?post_id=24370716#.WU4cC4VOLIV

So as you can see, the first quarter of transactions this Indian financial year has already surpassed the first quarter of last year and considering what has taken place over the past 7 months this in my view is quite a good result. This is also why I believe the company have been prudent in their approach to take a breather, pause and assess the macro and micro enviornment. What if this metric result was on less than the full 14,346 ATMs under management?

What else can we take away from this Operations Update. Actual ATM enquiries and ATM transactions metrics are both recovering well. Another positive.

Here's the article they referred to...

https://www.bloomberg.com/news/articles/2017-06-29/cash-won-t-be-obsolete-in-india-anytime-soon

Now to TSN.

Here's what I posted a while back on the one identified area the company found attractive - Cyber Security.

https://hotcopper.com.au/threads/an...3393783/page-57?post_id=24413868#.WV2zrYVOLIU

I highly recommend you click on the 2nd link to the article I highlighted and at the bottom of my post. At the bottom of that article is a PDF report - make sure to click on that.

Here is the article the company referred to in today's Operations Update re one of the three top issues facing the Reserve Bank of India i.e. Cyber Security.

https://qz.com/1020168/the-rbi-is-worried-about-three-big-problems-in-indias-banking-sector/

I like the sound of the 4th dot point on page 2 of today's Operations Update.

I also like the sound of the possibility of acquiring majority stakes in existing proven technologies that are already generating existing revenues. The company is expecting to provide an update on these potential opportunities in the coming weeks i.e. if it's yay or nay after thorough due diligence.

Keep in mind that the NOV tie up only took two months from MOU to be signed. Record outcome imo.

My shares are so tight.

Tony