Based on the numbers in my previous post, should the first half year match the second (and I don't see why it shouldn't), approximately 146 transactions per day x 1500 ATMs x 365 days = 80,000,000 transactions and therefore AUD $12M in revenue.
Now look what happens when just one metric improvement takes place i.e. 800 more ATMs are deployed (which is what the company is hoping to achieve come end March total 2300).
146 transactions per day x 2300 ATMs x 365 days = 122,567,000 transactions and therefore AUD $18,385,050 in revenue (122,567,000 transactions x AUD $0.15c = $18,385,050).
Let's take it one step further and hypothetically increase the transactions per day by just 10% and see what happens.
146 transactions on average per day x 10% = 14.6 additional transactions per day per ATM.
Total therefore = 146 + 14.6 = 160.6 transactions per day per ATM.
160.6 transactions per day x AUD $0.15c = AUD $24.09 per day per ATM in recurring revenue.
AUD $24.09 x 365 days x 2300 ATMs = AUD $20,223,555 in recurring revenue per year.
To see what difference just a few metric improvements could make, I've summarised below.
AUD $20,223,555 - AUD $18,385,050 = AUD $1,838,505 in additional recurring revenue per year, just by improving these few metrics!!
What we now need to see from here is ACTUAL improvements in those metrics I have previously highlighted ie:
* An increase 'on average' of the number of transactions going through business per day for the ATM business.
* An increase in transaction fees across the board. As I highlighted the company have already achieved this with one bank client already.
* An increase in the number of clients for the ATM business.
* Renewal of existing client contracts and also better terms.
Should the company improve any number of these metrics and total revenue per year for the ATM business will grow exponentially.
Tony
TSN Price at posting:
0.4¢ Sentiment: Buy Disclosure: Held
