Tyro Payments (ASX:TYR) tumbles on half year update

Company News

by Lauren Evans

Payments company Tyro Payments (ASX:TYR) posted its half year results for the six months ending December 31, a period impacted by Covid-19 lockdowns.

Its normalised gross profit rose 11.3 per cent to $68 million, and its transaction value lifted 31 per cent. Revenue rose 30 per cent to $149.2 million and its EBITDA of $2.8 million was down from $8.5 million the prior year. 

Despite improved results, earnings came in below expectations. The company said lockdowns impacted many of Tyro’s merchants, particularly hospitality and retail merchants in NSW, Victoria and ACT.

Tyro said with Covid lockdowns abating and government actions in train to encourage a return of workers to the Nation’s CBDs, a positive bias for card present transactions in retail and hospitality is considered a likely feature in the second half. 

“Our start to the second half has seen our strong momentum continue. Lockdowns abating along with government and businesses encouraging a return of workers to the Nation’s CBDs, provide a positive outlook for our predominantly card present payments operation,"  said managing director Robbie Cooke.

"We are looking to roll out our new Eftpos card reader in the half initially to our Bendigo Alliance merchants. We are also continuing our work on a new android based terminal which will supplement our fleet and presents some exciting opportunities for the future." 

The company did not declare an interim dividend. 

Shares in Tyro Payments (ASX:TYR) are down 25.8 per cent to $1.62. 

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