I don't quite understand the concern around the cost base or margin. It didn't seem quite big a deal to me because the agreement we had with Bendigo has a Partner Revenue Share scheme built in where the difference in the Gross Profit growth and the revenue growth are balanced out, somewhat. I went at length when explaining to sydneyguy who misinterpreted that in another chat.
In short, in the latest reporting our Revenue grew 25% and the Gross Profit only grew 14%. So the Partner Revenue Share kicks in and basically reduce the profit sharing to Bendigo and therefore our Gross Profit was improved to 22%. So for a fair comparison, it was Revenue grew 25% and Gross Profit grew 22%. I think 3% difference isn't that big of a deal given that we managed to increase the volume of transactions significantly by absorbing the 5th biggest bank's transactions into ours.
TYR Price at posting:
$3.15 Sentiment: Hold Disclosure: Held
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