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Stargroup ATM machine revenue jumps by 50%

Aggressive ASX listed ATM machine operator Stargroup has booked its 8th record quarter in a row on the back of a 50% jump in ATM machine revenues in the December quarter.

The company also expects to finish this quarter with another record, its 9th in a row, as the full impact of their recent acquisition of rival ATM machine operator Cash Plus Australia kicks in.

With its ATM machine division firing, Stargroup booked a 24% increase in overall gross company revenues in the December quarter compared with the September quarter and a 51% increase in ATM machine transactions.

The number of ATM machines it has on the street increased from 120 in November to over 220 in December after integrating the Cash Plus ATM machine network.

Company revenues for the quarter lifted from around $600 000 in the September quarter to around $750 000 in the December quarter, spectacularly blitzing its March 2014 quarterly low of less than $100 000 in just 1 year and 9 months.

Stargroup CEO and Executive Chairman Todd Zani said “Whilst this quarter’s results only included one month’s worth of integration of the Cash Plus Australia acquisition in December, they have also been positively impacted by the ramp up of our existing ATM network as customers become familiar with our locations.”

“It is also a reflection of our overriding principle to only place our ATM machines in high quality sites that our experience tells us will yield acceptable capital returns”. Said Mr Zani

Stargroup continues to focus on the average number of transactions per machine metric which it says is the best way of determining how well it is investing shareholder funds.

At 667 transactions per month per ATM machine for the December quarter and 710 in December alone, Stargroup says it is leading the industry by this measure.

Mr Zani said “To put these numbers in perspective, the prior quarterly result was already a 20% premium to the average transactions per machine reported by industry leader DC Payments in that quarter.”

“We are very focused on the ‘transactions per machine’ metric as this is the best guide as to how well we are investing our shareholders capital”.

“Our goal is to pay back the capital for each ATM machine within 18 months and we are certainly on track to achieve this goal”. Said Mr Zani

Stargroup has also alluded to a possible reduction in its operating cost base in the next quarter as it achieves some economies of scale with the increased size of its ATM machine network. 

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Stargroup (STL)

Share Price

Closing price for the last 90 trading days
Source: Morningstar

Total Shareholder Return as at 29/06/18

1 year TSR5 year TSR
4thAdvance NanoTek1986%102%
302ndGoldfields Money27%5%
496thWestStar Industrial-4%-54%
505thStargroup-6%-11%
767thCarnegie Clean Energy-61%-6%
722 WA (and selected non WA) listed companies ranked by 1 year TSR relative to other companies with similar revenue
Source: Morningstar

Share Transactions

09/08/17
$12k Bought
27/06/17
$0 Other
27/06/17
$35k Bought
Total value as at the date of the transaction
Source: Morningstar

Revenue

87th↑Stargroup$563k
96th↑Carnegie Clean Energy$5.3m
97th↓Advance NanoTek$5.1m
100th↑WestStar Industrial$4.6m
101st↓Goldfields Money$4.2m
239 listed industrial companies ranked by revenue.
Source: Morningstar

Remuneration from Stargroup

1366thJay Kim$29k
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