ASX listed financial payments player Stargroup’s stunning run of revenue growth seems to have no end with the company posting its 13th consecutive quarter of record revenue in the March quarter.
In a market update on Tuesday, Stargroup announced a whopping 296 per cent revenue improvement on a year-to-date basis for the March quarter and a 133 per cent lift in quarterly revenues compared to the same period last year.
Revenues from its Automatic Teller Machine division continued to surge, lifting by 15 per cent over the quarter, while total revenues were expected to surge another 27 per cent in the current quarter, company management said.
Stargroup CEO Todd Zani said: “Our Q3 ATM revenues were a 15 per cent improvement when compared with the prior quarterly result and our total group revenues have also improved 11 per cent when compared over the same period, which is an excellent result for the quarter.”
Stargroup is the only ASX listed company deploying ATM machines in Australia, and the only locally listed ATM company with a direct equity interest in the manufacturer of its machines through NeolCP, a South Korean private company.
Stargroup currently has more than 300 ATMs on the street around Australia and New Zealand and recently posted a very solid half-year result that featured best ever revenues of more than $4 million.
In Tuesday’s update, Mr Zani also said the company expected to complete its hotly anticipated acquisition of high margin Australian ATM machine service provider Indue in April, which would be another revenue booster.
The Indue deal is set to see Stargroup add $1.7m in EBITDA to their set of yearly accounts for an additional annual turnover of $4.1m.
"We are looking forward to completing the Indue acquisition at the end of this month and we estimate that our future revenues in the next quarter will be up a further 27 per cent on the current quarter, based on further organic growth and the boost anticipated from the integration of the Indue businesses into our group of companies, as highlighted below,” Mr Zani said.
“We are confident in completing this transaction at the end of April. Despite the delay in the settlement of the Indue acquisition we are still on track to achieve the projections outlined to our shareholders in terms of our future revenues and EBITDA for the 2016 – 2017 year."
By Matt Birney
