EML Payments H1FY24 Interim Results Overview

EML Payments Limited (ASX: $EML) has released its H1FY24 interim results presentation, reporting a 30% increase in revenue to $150.7 million and a 119% rise in underlying EBITDA to $29.3 million. The company's cost optimization initiatives are expected to drive lower overhead costs in the second half of FY24, with a focus on accelerating efficiency into 2025. The presentation will be delivered by Interim Group Chief Executive Officer Kevin Murphy and Group Chief Financial Officer James Georgeson.

Executive Commentary on H1FY24 Performance

The company's 1H24 financial results reflect strong revenue growth and improved underlying EBITDA, driven by positive recurring revenue across business units and significant treasury gains. Despite challenges with cost optimization being behind schedule in the first half, the Board is committed to accelerating these efforts in the second half and beyond. EML Payments has made substantial progress in leadership rebuild and continues to focus on strategic initiatives, particularly in the Sentenial segment.

Outlook and Guidance for 2H24 and Beyond

Looking ahead, EML Payments aims to lift growth caps on PFSL (UK) and finalize its separation from PCSIL, while executing a cost optimization program and building momentum in go-to-market teams. The company anticipates an underlying EBITDA of $52m-$58m for FY24, with an annual margin expansion of 4 to 5% from FY23 to FY26. EML Payments remains focused on delivering dependable recurring customer revenue, optimizing interest revenue, and driving cost reduction activities to achieve its medium-term goals.