'The group gross profit as disclosed at the AGM has been reduced by the Bendigo Bank Alliance revenue share'
From my understanding, this is the first time we are getting insight into the merchant alliance between Tyro and Bendigo. We know many moons ago, it was announced that: 'Bendigo Bank will receive upfront consideration of 9m and an ongoing gross profit share from existing and newly referred Bendigo Bank business customers who use Tyro's merchant services'
In this new reporting update, Tyro has indicated that transaction volume grew 25%, but revenue was up 15%. They then clarify that the difference is due to the Tyro/Bendigo agreement, which results in the variance between 25% and 14%. This is a fair whack of Tyro's revenue going straight back to Bendigo unless I am mistaken?
The next statement on the report is a little confusing to me, that statutory basis reporting would see the alliance revenue share not deducted from GP but from depreciation and amortisation. Why would they do that?
TYR Price at posting:
$3.45 Sentiment: Hold Disclosure: Held
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