SmartTrans had highlighted that they expected lower levels of purchasing activity back a month ago, so the Quarterly commentary shouldn’t come as a surprise to anyone who bothers to read their announcements.
SmartTrans’ also expect revenue from Direct Carrier Billing to trend upwards from mid-March due to a number of their recent announcements and the time lag for their payment terms (up to 120 days) with their State Owned partners.
Increases in revenue from their new initiatives should be reflected in Q4 results.
ASX Announcements
11/02/2016
SmartTrans secures landmark agreement to enable cross-border payments to and from China via SmartPay platform
Agreement with QianDaiPay will enable SMA to make cross-border Payments (up to USD50,000 per supplier per day) to merchants outside China on demand from its SmartPay platform
The new functionality greatly simplifies and fast-tracks payments from China to merchants seeking to sell their products in China
SmartTrans to earn revenue via merchant fees for every transaction
SmartTrans is confident of increasing cash receipts over the coming months
SmartTrans also notes that its revenue base grew strongly in the last quarter and this revenue is expected to be collected in this and the following quarter in line with the payment terms (up to 120 days) the Company has in place with its telco and payment partners.
30/03/2016
SmartTrans expands Direct Carrier Billing into Hainan Province
Update on Revenue Clarification
“...As previously communicated, the payment terms that SmartTrans has in place with its billing partners in China, a number of which are State Owned Enterprises, range from 90 to 120 days, resulting in a differential between reported revenue and cash receipts....”
CEO Commentary
“We are also pleased to confirm that we have been very proactive and focused on payment collection in the current quarter. Revenue has been tracking in line with expectations in the Quarter, consistent with lower levels of purchasing activity that occur in the lead up to and during the Chinese New Year period. Notwithstanding, SmartTrans’ revenue from Direct Carrier Billing is expected to trend upwards from mid-March.”
11/04/2016
SmartTrans launches billing for new lottery offering in major Direct Carrier Billing expansion
Partnership represents entry for SmartTrans’ billing into large and growing lotteries sector in China -total sales of RMB382 billion(AUD77 billion)in 2014¹
Agreement with established lottery operator–immediate revenue generation
SmartTrans to launch marketing of new offering
Initial roll-out in Hainan province –assessing additional provinces
Company negotiating further Direct Carrier Billing partnerships in other provinces
Cash received in accordance with expectation during Q3 amounted to $2.72million
As always DYOR and Good luck
GrayNomad
SMA Price at posting:
3.8¢ Sentiment: None Disclosure: Held
