EML Payments Limited (ASX: $EML) releases strong 1HFY24 results

EML Payments Limited (ASX: $EML) has released its 1HFY24 Appendix 4D and Financial Results, reporting a 30% increase in revenue to $150.7 million and a 119% growth in underlying EBITDA to $29.3 million. The net loss after tax of $12.4 million includes an impairment of $9.3 million related to PCSIL intangibles. The cash balance as at 31 December 2023 stood at $77.3 million, with underlying operating cash flows of $20.8 million. EML has reaffirmed its FY24 underlying EBITDA guidance of $52-58 million.

EML's Interim Group Chief Executive Officer Kevin Murphy provides insights

EML's Interim Group Chief Executive Officer Kevin Murphy expressed satisfaction with the strong revenue growth of 30% to $150.7 million and the remarkable 119% increase in underlying EBITDA to $29.3 million. He highlighted stable recurring revenue generation in all three business units (GPR, Gifting, and Digital Payments) and a significant uplift in interest revenue driven by strong treasury management and market rate improvement. Murphy also emphasized the resolution of PSCIL via liquidation and the management's focus on optimizing the core business.

EML's outlook and corporate strategy

EML Payments Limited remains focused on creating a stronger EML in the near term, with progress made in restoring corporate stability and addressing operational challenges. The company aims to optimize its cost structure, energize sales efforts, and continue the strategic review to drive growth in profitable areas of the business. With a reaffirmed FY24 underlying EBITDA guidance of $52-58 million, EML is committed to leveraging its strong revenue growth and operational improvements to achieve its corporate goals.