Company Name: Star Payment Systems
Announcement Date: 05/01/2017
Announcement Category: Team Update
Announcement Content:
Stargroup (ASX:STL) has achieved its 12th quarter of revenue growth posting a 36% increase on the prior September quarter.
The record December quarter means a 206% improvement on the half year revenues compared with 2015.
The company is on track to achieve forecast projections for revenues and EBITDA in FY2017 and is on track to pay its maiden dividend.
The fully franked maiden dividend of $0.001 per share on 1 June 2017 represents an annual yield of 6.67% on the current share price.
Todd Zani, CEO, commented:
"I am excited that we are also anticipating that our future revenues in the next quarter will be up a further 31% on the current quarter, which is based on further organic growth and the revenues anticipated from the integration of the Indue businesses into our group of companies, as highlighted below."
Background
Stargroup is a dual listed technology company that owns a 350+ ATM network in Australia and provides EFTPOS and payWave technologies, and has a 11% interest in NeoICP Korea Inc, the manufacturer of cashPod ATMs, back office and casino settlement solutions.
Stargroup offers two key products - ATMs and EFTPOS terminals.
Stargroup recently completed its due diligence of the ATM switching, settlement processing, telecommunications and ATM reseller business operated by Indue Limited.
This transaction is now proceeding on an unconditional basis.
Indue provides services to circa 70 ATM deployers, 1,700 ATMs, 1,350 modems and processes 12 million transactions per annum.
Analysis
Stargroup posted revenues of circa $2.4 million during the December quarter, the first quarter the company has eclipsed $2 million in revenues.
With the company now projected to eclipse $3 million in the current March quarter, it is clear the management team are driving Stargroup in the right direction.
Stargroup is in complete control of the ATM cash cycle from switching, processing, deployment, manufacture and cash replenishment.
The company is the only ASX listed ATM operator deploying in Australia and is the only ATM operator that has an ownership interest in its manufacturer being NeoICP.
Significant catalysts to be delivered in 2017 include:
- Major cost savings of >50% since 1 July 2016;
- Launch of new EFTPOS technologies in early 2017; and
- Maiden dividend payment earmarked for June 1 2017.
Announcement URL: http://www.proactiveinvestors.com.au/companies/news/171114/stargroup-targets-dividends-after-record-revenue-growth-171114.html
About Star Payment Systems:
Financial technology company Stargroup Limited is the only ASX listed company deploying ATM machines in Australia and importantly, the only listed ATM company having a direct ownership interest in the manufacturer of its ATM technologies, namely NeoICP, a South Korean private company.
Stargroup Limited became the exclusive distributor of the cashPod ATM range including the recycler ATM, back office and payment technologies in Australia for the next 5 years on 7 August 2015.
Stargroup Limited, via its wholly owned subsidiaries, StarPOS and StarApps, is also an EFTPOS and payWave technologies provider and developer of the source code in its terminals via its 5 year distribution agreement with West International AB, a Swedish NASDAQ listed company, to distribute next generation EFTPOS payment terminals and solutions in Australian and New Zealand.
Go to Company Profile for: Star Payment Systems
Announcement Contact: [email protected]
