Prior to the July 2015 contract win in the E-Kiosk space, TSI India had strong relationships with six clients in the Bill Payment/Kiosk space.
Bill Payment/Kiosk Machines Business prior to July 2015:
* 200 machines spread over 6 clients.
* TSI India are approaching 100 million transactions for their entire business.
* 10 million transactions going through business per year on the existing 200 machines on the market (approx 10% of TSI India's business comes from the Bill Payment/Kiosk Machines Business).
* 10 million transactions x AUD $0.20c = AUD $2 million dollars in gross recurring yearly revenue.
* 10 million transactions / 200 machines = 50k transactions per machine / per year.
* 50k transactions per machine per year / 12 months = 4166 transactions per month /per machine.
* 4166 transactions per month / per machine / 30 days = 138 transactions per day / per machine.
July 2015 TSI India won a 200 E-Kiosk contract. Announcement highlighted that the 5 year agreement win would provide a minimum transaction guarantee per kiosk per month and would immediately provide the company positive cash flows.
Total now = 7 clients in the Bill Payment/Kiosk Business space. One contract with ONE client has now doubled the number of machines in this business. Note, it took them 10 years to reach 200 machines. What kind of business is this ONE new contract win going to provide TSI India? How many branches do PSPCL have throughout India? Could we see repeat business not only from this client but other existing clients? Could this one contract with this one client surpass what has previously been achieved with six clients over a 10 year period? Can they surpass 4166 transactions per month / per machine with this one client? If so, that could mean over AUD $2 million dollars in gross recurring yearly revenue from this one contract. Note, I haven't factored expenses into this exercise.
Something I have overlooked is that the total number of machines figure that was highlighted in the July announcement below. The company highlighted that with July's contract win they now have IN EXCESS of 2100 machines comprising of ATMs and Bill Payment Machines. That means that as of the 1st of July 2015 there were most likely a little over 1900 ATMs online (2100 - 200). Almost four months have passed since that announcement and we know that one of TSI's clients (TMB) have been rapidly expanding their ATM network over the past months. What about the other client Punjab? I wonder how that previous contract is coming along?
