Ann: Trading Halt, page-10

In the FY25 guidance update in Feb, the slide on revenue forecasts for FY26 indicated an 140% - 180% increase in revenues from the BLA contract upgrades, plus the TATA and BankIT acquisitions. The forecast did not include any interchange fee increase.




In a presentation NS gave prior to the TATA acqn (so around August last year), he said this about the the impact of the interchange fees;

10:21 The Interchange fee in India you'll see a lot of media reports that there is speculation that the Reserve Bank of India are looking to increase that again, they increased it 2 years ago. now that we have our white label license we're actually part of those panel discussions with the government in relation to what they're intending to do, we have a slightly more conservative estimate out there. at the moment the media reports state that the interchange fee will increase from 20 to 21 to 23 from 17 rupees per transaction. We believe it'll be at the lower end of the range going from 17 to 19, whereas 2 years ago they went from 15 to 17 so we think it'll be a two rupee increment. Two rupees on an annualized basis to our existing businessadds about $10 million to our bottom line so even at the bottom end of that range it's very lucrative for us and we expect that to be announced by the RBI sometime this financial year so between now and the 31st of March …".

That's approx. $10M on the (then) existing business. The business is about 3 times the size now, based on new BLA's and WLA's added from acquisitions. Does that mean the impact to the bottom line also increases by 3x? No idea, but likely to be a significant benefit over and above the initial $10M forecast.

Bottom line EBITDA for FY25 is forecast to be $30M - $32M. So even a $10M uptick makes a huge difference.

FY26 is going to be very interesting.