agm meeting

I attended the AGM meeting yesterday and I must say , what a great company Customers is, especially Tim Wildash, the CEO. Couple of points came out of the meeting through questions taken by Tim.

Banning ATM's in gaming venues - Tim said they had this well in hand and were not overly concerned about it. They had presented solutions such as placing limits on amounts that could be withdrawn at one time /day. Regardless, if the worst happened they would lose approx 7% of transactions until they had placed machines in premises adjacent to the venues which they have thoroughly researched

Merchants sharing in the $2 - Tim said all current contracts are written so merchants do not share the uplift in revenue from DC . Av contract length is 37 months so the uplift in revenue will have a substantial effect on NPAT.
As contracts come up for renewal merchants obviously will be after a slice in the revenue uplift.

Phone cards - Tim stated the revenue from phone cards will be minimal. The main reason was to differentiate their machines from competitors to gain more sites and retain existing ones.

Note they are now stating they have ATM's in over 5500 locations ( they used to say 5000 ). The message was transactions are up, more sites are being procured and costs were decreasing. He also said the "fee for service"
model was progressing well with other party's expressing interest to pay Customers a fee to run/ set up their ATM networks.

I'm curious that they arranged the sale of 14.2%, not 16.65% to Bendigo Bank. Looks like they want to keep their hand in with a 5% holding of SPS to keep an eye on things.
Let's see what % they sell to Master Card. With Bendigo and Mastercard presumably with 47.5% the 5% holding would be quite strategic.