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mal -terminals must be made or dependent on parts from China are...

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stayer

10,303 Posts.

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28/02/20

13:52

Post #: 43215082
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Originally posted by mal85 ↑

the acquiring business GP margin is only 50%. But that margin drops almost completely to the bottom line (ex-tax).

Wholesale terminal costs ? $300 (somewhere between 200-400)
Monthly acquiring revenue per terminal is approx $250 based on most recent graph. At a unit level the surcharge is approximately 1.7% and the interchange fees are approx 0.8% so GP margin of about 53%.
so terminal payback (which will be captured in D&A) is about 4months with shelf life of about 10 years). So sustaining D&A expense should only be about 3%. So EBIT margin is 50% and ‘I’ will be 0. So net margin on incremental revenue once fixed costs are paid is 35%.

Therefore every 1000 terminals add about 1m NPAT to the bottom line and because churn is negligible this is mostly recurring.

I’ll leave to others to model it out ...

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mal -terminals must be made or dependent on parts from China are they??
cant explain weakness otherwise

SMP Price at posting: 50.0¢ Sentiment: Hold Disclosure: Held
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Last $1.14		Change -0.010(0.87%)		Mkt cap ! $276.0M

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