Tyro shares tumble 8% despite strong results
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The news: Shares in Tyro Payments plunged 8% in early trading, despite the Sydney payments provider reporting a strong first-half earnings.
The numbers: Net profit after tax for the six months to December 2023 jumped 367.2% to $5.1 million from $1.1 million during 1H23.
First-half EBITDA grew 40.6% to $27.3 million compared with the prior corresponding period. Tyro also lifted its EBITDA guidance for FY24 up $4 million to $58 million.
The total value of transactions completed on Tyro's payment products rose 2.2% to $22.2 billion.
The context: Tyro said the strong results were driven by the company's focus on margin and cost management, and growth from its non-discretionary health and services verticals.
Earlier this month, Tyro won a $10 million legal battle with Canadian company Kounta, after the latter failed in its appeal against a court judgement that it breached its obligations by offering a competing product to Tyro merchants.
What they said: Tyro CEO and managing director Jon Davey said: "Despite the macroeconomic environment, we are confident in the resilience of our business and opportunities for growth".
"In line with our strategy, we will expand into at least one new vertical this calendar year, boosting our customer base across a more diverse portfolio of industries, and we will continue to develop and promote our cashflow solutions alongside our payments services," he added.
The source: ASX announcement
