Ann: Interim Update, page-23

Now that the volume processing issues have been resolved this announcement is saying that going forward they are able to process the full $550m contracted GPTV.

From memory they are charging an average a 100 basis point (1%) MSF.

That would work out that they now have a annual revenue run rate of $5.5 million or $1.375 million a quarter.

This revenue figure is only for providing settlement services. The other revenue streams being identity (KYC) services and payment processing (both are at a set fee per transaction/service) as opposed to the settlement fee that is a % of GPTV.

ISX appear to be regularly updating the market on changes in contracted GPTV but not providing as regular updates on the breakdown of revenue from each of the three verticals.

The last breakdown I can find was from the half yearly released on 28 Feb that stated, "Settlement revenues now make up over 65% of our revenue by vertical and will be the primary driver of revenues going forward."

So based on that comment I would expect that settlement services as a percentage of total revenue has probably continued to increase since that time. Let's say it now makes up 75% of revenue now (total guesstimate).

That would work out to roughly as an annualised total revenue run rate of approx $7.33 million or expressed as a quarterly figure - $1.83m.

These figures are reliant on ALL of the contracted GPTV actually being integrated and producing revenue. I am not sure if that is the case or not. I believe we only have been told of one of the European merchants having gone live. Possibly the others have and they have not updated us? Maybe updating us as each individual merchant goes live is no longer considered material?

What are others thoughts?