Stargroup feeling bullish on record ATM result

Published at Nov 9, 2015, in Technology

ATM player Stargroup Limited (ASX:STL) has had a record month, and has taken aim at its nearest competitor in the space by claiming STL has market-leading average monthly transactions.

The tech play told the market today that it had delivered its eighth record quarter in a row, with transactions reaching 654 in the previous month per machine, which was an 8.64% increase on the previous month.

In terms of raw number of transactions though, it had an 11.49% bump as it added more machines to its network.

On the back of the recent strength, it has also bumped up its annual transaction forecast up from 1.8 million transactions to 2 million transactions.

“The transactions on our ATM network were 11.49% up on the previous month which is a direct result of the ramp up of our ATM network as it begins to mature,” STL CEO Todd Zani said.

“It is also a reflection of our concentrated and disciplined efforts to only place our hardware in high quality space.”

Zani also took aim at nearest competitor in the space, DC Payments.

“This figure [average transactions per machine] represents a significant premium to the average transactions per machine reported by industry leader DC Payments,” Zani said.

Transaction and revenue growth for STL

He also said taking into account the recently announced acquisition of Cash Plus Australia and its 109 ATM machines, that its annual gross revenue could reach upwards of $5 million.

About Stargroup

Back in September STL merged with iCash Payment Systems to create a combined ATM and EFTPOS company.

It has a network of ATMs around Australia, taking a clip on each transaction, but it also has longer term plans to get into the EFTPOS game, adding another source of revenue for the combined company.

STL is also the only listed ATM company which has a direct stake in the manufacturer of its ATM machines, namely NeoICP in South Korea.

It has estimated the stake helps reduce the costs of manufacturing machines by about 30%, saving $1.1 million in capital expenditure each year.

It has also sought to diversify into other areas such as ‘cash recycler’ ATMs and PayWave Technology.

Want more on STL?

Stargroup to acquire Cash+

Stargroup flags asset re-rating

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.