ASX-listed financial payments upstart Stargroup today reported record monthly ATM transactions from its Australia wide ATM machine network for July and predicted its 11th consecutive quarter of revenue growth.
Stargroup’s Executive Chairman and CEO, Todd Zani, said “The transactions of our ATM network were 11.67% up on the previous month, which is a direct result of the successful completion of the CashMyATM acquisition on 1 June and the further ramping up of our ATM network as it begins to mature.”
Revenue from the ATM business in July was well in excess of $500,000, more than the company’s entire revenue for FY15 and is now running at an annualized rate of $6.7 million for teh year.
The company also reported that the all important average number of ATM transactions per machine had increased by 11.35% in July.
The record result for July follows a 242% increase in revenue for FY16 and news that Stargroup would reached profitability and was considering a maiden dividend in 2017.
The company’s rapid growth is being driven by an aggressive expansion program, including the acquisition of three significant ATM networks in the past year.
Mr Zani said growth was “… also a reflection of our concentrated and disciplined efforts to only place our hardware in high quality sites and to only perform high quality acquisitions.”
He said; “With an average of 647 transactions per machine in July, we are achieving significantly better levels than those reported recently by industry leader DC Payments.”
He added that media reports of an industry-wide decline in ATM transactions masked the fact there was actually a strong growth opportunity for innovative players such as Stargroup.
“I would purport there has been an overall decline in the number of ATM transactions, but this is due largely to the closure of the numerous branches of the major banks. People still need to get their cash from somewhere, which is driving the increase in withdrawals at the ATMs of independent operators such as Stargroup.”
Stargroup’s growth and profitability is now solidly underwritten by the ATM business, but Zani says the real blue sky opportunity rests with its EFTPOS division.
The number of terminals recently increased by 433% following the sign up of a major financial services customer which suggests some interesting times ahead for Stargroup shareholders.
