Ann: Half Yearly Report and Accounts, page-27

pretty positive call imo, notes only, sorry for spelling etc, in hurry

didn't seem to be any feeling of being on the backfoot - the CFO is like a scientist imo, he can answer all the numbers questions and queries without vague explanations of nothing which I often come across. Great to see a numbers professional


gross profit up with a change in the mix of card usage

business definitely impacted by covid - a change in the use of debit cards, and good competition in that space helped drive gross profit - lots of other growth drivers idle due to covid, in development, developing

outage , more later, but good to see that tyro on their loans business was able to manage it well and help customers with payment holidays at zero interest, and their loss was much lower than forecast , recoveries faster and greater and hence a write back of a million on provisions

covid - ok so they had issues.....but still managed to process a growth

good to see they take out jobkeeper from numbers when discussing all the different profit achievements

growth in the future -

exicting when you consider - health, they are in the sector but that saw a decrease in covid due to the fall in elective procedures
developments in the health space for providers with medicare reconciliations etc - this is expected to pick up and provide contributions in the future

Alipay connectivity now there, but sadly overseas credit card transactions plummeted due to covid travel restrictions, so if you believe that restrictions will be released and international travellors will return, well at some stage that going to be a good driver of growth as its essentially idle at present with international card transactions decimated and obviously some of thise will want to use ALIPAY - so a good future profit driver waiting to be used - international restrictions imo will see further profit growth - when, who know, but we have to be closer than last year

Bendigo, more terminals coming which will involve a cost will produce even more top line and profitability in the future, its on track - end of second half

zip pay (no specifically detailed) testing working, zip solid in medical at present, so growth driver there in future coming, zip has had alot of success and tyro will be there to process - so something for the future


Questions from floor main take aways
goldman -
Compnay response - normalization of profit margin- no dramatic merchant changes
benigo intergrtion - transaction volume this year coming and on track-

jpm -
increase in card mix, schemes in debit cards driving down card interchange fees so good for tyro

mqg - (big new shorter) hardware costs underestimated? - no - its software not hardware issue where everthing needs replacement
how many inactive in the total claimed,?,,,,,,Compnay - we are issuing you ACTIVE numbers, not a total number which includes inactive, concerntrate on the numbers -

(bad luck mate!!!!! try as you will - numbers claimed by compnay are ACTIVE,,,,,)

jeffries - how many customers impacted - jan merchants impacts, rentals waivers included as cost of remediation

15 M is potentially some merchant rental relief,,,,
waived 800K in rental charges
tyro connect, value add product

CSLA main churn sadly sme businesses going out of business - not concerned, moves in customers are as normal

private investor question -( wtf! awesome) - merchants do have ability to surcharge - some merchants wish to take advantage as per the rules- some take advantage - its not a profit driver as its the customers looking to recover the costs - there is no differential

(many have spelling wrong on that business) investments -

connectivity issue - wasnt it a sudden and creeping problem, are you confident that it just didn't creep up - given first diclosure was 15 % then 30%

compnay response
first siclosure as events unfolded,
second as we knew more so c30% -

issue couldn't be foreseen - everything done from moment it happen to mitigate - never happened with tyro -

they are developing a dongle as a fail safe, something that no one has ever done - alternative path being developed to make sure it doesnt happen again,

dont think it will ever happen again because of the root cause - but taking action to stop loss of connectivity happen again - bit of a first offering this fail safe and something to help retain and gain trust with clients

ends -

imo - target 3.5 - solid gross profit
number of drivers sitting there which will hit bottom line on relaxation of international travel restrictions
loan loss much lower than expected
no churn outside of historical norms occurring despite outage
new customers still joining
action being taken to prevent another loss of connectivity
health space looks good for growth and its there and ready to take advantage of lessening restrictions
Active customers reported are active customers full stop
despite provisions for connectivity issue, profit there, eps before depreciation positive even after jobkeeper


back to where it all started getting smashed imo, company doing well despite the outage, the company appeared to handle it well - employees clearly skilled imo

plans in pace have been effective,
company probable before non cash depreciation and government grants,
various sectors of transactions due to expand as covid restrictions ease-
big number of terminals to be integrated in near term..project integration on track
short positions growth of late high, these should ease imo given the documents
notable high accumulators not on the call always a good sign