Hey Hecticpharmer,
thank you for the kind words mate.
In regards to EML, the drop in EBITA is due to the ongoing court case regarding the CBI issue- they’re currently in the courts clearing any wrong doing with the acquisition in Ireland -there are significant costs in court to the bottom line along with that business slowing pending dismissal.
in addition to this, the sentiment also lowered due to this business slowing (due to pending court case) as is 60% of their business regarding revenue- the board have done a terrible job of the overseas business and have really mismanaged their company and investors.
EML are issuing cards for many fintechs (MoneyMe) being one of them- EML do have an acquirer license, the predominantly specialise in gift cards with their processing business (& open banking)- I know they have MasterCard approval acquirer , im not sure on Visa though, Visa is generally the hardest one to get, they’re extremely scarce in Approval-(see below photo)
Visa is the crown Jewel in processing IMO, MasterCard are easier to get.
In regards to Novatti- I can’t see EBITA reducing based on the following metrics-
Previously we had been processing 2.5B transactions per year, this was without the Acquiring licenses, we ha
d been receiving approximately .3%-.5% per transaction ($12.5M PA).
Now that we are getting a higher % per transaction, this has now become 1%-1.5% per transaction ( based off 2.5B transactions, this is now $25-$37M revenue) without adding any growth (no reckon, no ATX, Siam Bank, Emersion, Verve, XRP etc).
The addition to the Reckon customer base with 114K customers integrated with Novatti technology, how many transactions does this equate to? If every business was to generate 1000 transactions (let’s face it, that’s small), Novatti have just generated -
2000 transactions (incoming and outgoing) x 114K Customers = $11.4M (based off the shared revenue % (.05% I have worked off here as this minimum, half of the 1%).
I don’t know many successful businesses that don’t generate less than 5,000 transactions per year (Processing incoming and outgoing).
The above is only based off Reckon, now look at adding metrics to the following-
ATX- $$$
Verve-$$$
Emersion-$$$
Siam Bank Thailand -$$$
XRP- Phillipines- $$$
all of these above are scalable metrics for processing, everyone needs to pay for things and be payed, Novatti taking a clip of the 360 model. This is why the principal acquiring licenses were critical to be integrated, it literally adds impact and high revenue/EBITA straight away.
Adding the acquirer platform to the business will now bring in the bigger Fintech companies, which we should all be extremely confident and excited about due to how much money this will generate the business
(20min delay)