Hi @djwillis Not sure what you are asking me to correct? The AGM...

Hi @djwillis

Not sure what you are asking me to correct? The AGM preso today has two separate sets of figures that have not clarified things.

The EBIT guidance of $10.7m doesn't match up with the change that was made to EMA guidance.

Initially they said they had EMA applications of estimated $300m/pa converting at 100bps to a $3m gross profit contribution for CY2019.

They have since updated the market to say this figure is $400m/pa for CY2019 so I would expect that to translate to a $4m gross profit contribution.

Yet the EBIT guidance has not increase but remained at $10.7m and they have also referred to $3m in GP from EMA's for CY2019.

Both the $300m and the $400m figure were mentioned in the AGM presentation yesterday so not sure. An explanation may be that the $400m is a runrate figure and the $300m is what they expect to achieve during the CY? But it is not clear.



The other thing is that some of the numbers re card processing/acquiring don't seem to add up.

They are stating that they will have a gross profit contribution of $13.2m from processing/acquiring on $880m in GPTV. They initially said that would be on a 150bps, then 130bps now >100bps.

I understand that it was said at the AGM that >100bps is now being quoted to protect pricing from competitors but to achieve $13.2m from $880m works out exactly to be 150bps. So either they will need to achieve an average of 150bps (even thought they have since said 130bps is a target) OR they will have to process more that 880mil in GPTV to make up for the reduction in bps margin.

Again this would be 880mil in GPTV at 150bps for the full CY to get to the $13.2mil figure yet they have stated they won't be at "full throttle" until March. So on the numbers provided I don't see how they achieve it.

They do have a fixed per transaction fee as well that would contribute but management have previously stated that these fees make up less that 5% of revenue.