The share price of payments company Tyro Payments Ltd [ASX:TYR] has bounced back today upon the release of their half-yearly results.
Source: Trading View
The TYR share price has been under some pretty serious downwards pressure of late, with particular note given to the outages of its payments terminals.
However, TYR may have already found its floor as its spade of recent kerfuffles seem to have been quickly forgotten in light of its record results.
Record transactions despite terminal outages
Perhaps one of TYR’s key results today was its record $12.1 billion in transactions processed by Tyro merchants.
Representing an increase of 10% from the previous corresponding period.
A number that could have been far larger had it not been for the challenges posed by COVID-19 to TYR’s merchants.
Despite the difficult operating conditions, which TYR said was ‘exacerbated by unpredictable lockdowns’, the payments company posted a record gross profit of $61.2 million.
An increase of 21.6%.
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Earnings were also up a whopping 464.2% to $8.45 million, setting another company record.
Although, what could be most impressive with the half’s result isn’t the financial figures but the retention of the company’s reputation.
TYR saw 30% of customers lose terminal connections in mid-January when a key certificate in the machines failed to work.
But what today’s results show is that new application rates for TYR’s services have bounced back and customer churn has not risen in the wake of the failures.
In fact, TYR hit a record of 36,720 merchants currently using their services, up 13% from 1H FY2020.
In discussing the results delivered, CEO Robbie Cooke said:
‘We saw transaction values steadily improve from a low of negative 4% in August to positive 19% by December 2020. This was coupled with a 13% increase in merchants choosing to work with us, with the result that close to 37,000 merchants are now on board with Tyro.’
Outlook for Tyro Payments
The terminal problems earlier in the year triggered a short-selling attack as class action lawyers circled TYR to claim financial losses on behalf of merchants.
Although TYR is seeking to cut out the lawyers and is encouraging merchants who suffered financial loss from the outage to register for compensation.
Which could cost the company up to $15 million.
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For Money Morning