Tyro Payments shares gain on four-fold profit boost
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The news: Shares in Tyro Payments gained on the ASX after the payments provider reported four-fold growth in full-year profit and announced a $5 million share buy back.
The numbers: Tyro shares were up 12% to $1.10 by 1:45pm AEST.
The Sydney-based company posted full-year net profit after tax of $25.7 million, up from $6 million in FY23.
Tyro's EBITDA grew 31.6% year on year to $55.7 million, with an EBITDA margin of 26.4% which added 4.5 percentage points from a year earlier. Revenue increased 8.2% to $471.4 million as free cash flow saw a five-fold rise to $30.4 million.
Tyro guided gross profit of between $218 million and $226 million in FY25 at an EBITDA margin of around 28%.
The context: Tyro said the result was boosted by a 27% rise in banking users, 21% growth in health transaction volume, and successful pricing transformation. The company said it expects to deliver "'Rule of 40' or greater" from FY26, meaning a combined gross profit growth and an EBITDA margin of 40% or higher.
Tyro also announced the establishment of the Tyro Employee Share Trust to purchase shares on-market, expecting to purchase up to $5 million of shares in FY25 as part of its capital management initiatives.
What they said: "We remain focused on extending our product offering and continuing to develop valuable innovations for our partners and merchants," said Tyro CEO and managing director Jon Davey.
"In FY25, we will enter two new verticals where we have a unique capability that will provide a competitive advantage, including unattended payments and a growing vertical adjacent to health," he said. "With these initiatives in play, we are confident in our runway for growth."
The source: ASX announcement
