Ann: Tyro Payments H1 FY24 Investor Presentation, page-24

After years of strong growth, they appear to have now stalled with only 2.2% growth in transaction volume which I think is quite concerning because of couple of reasons. Some would be worried about the trend change and could possibly signal a decline in volumes/transactions moving forward.

I sold on open this morning to lock-in profits.

• Due to the significant inflation over the last couple of years, people are now paying a LOT more for the same things so the TTV/Revenue should naturally increase/improve to reflect this.
• Secondly, we have had record migration in the past financial year - over half a million people entering the country just in the last year and this should naturally increase the customer base.
• Thirdly, cash transactions continue to decline with the increase in uptake of digital transactions so they are lots of positive tailwinds for any player in this space but unfortunately for Tyro the growth has been flat.
• Tyro has excluded lending losses from results and also share based payments which can inflate the EBITDA/cash flow.
  

Due to the reasons listed above and since Tyro is a comparatively smaller player in this space, anything less than 20% growth could be perceived as negative.

On the other hand Square reported strong earnings. POS providers like Lightspeed Kounta starting to offer eftpos that integrates with their system could perhaps be leading to a higher churn.