Listed ATM machine upstart Stargroup say they are now managing to pay off the capital invested in each new ATM machine in just 15 months due to massive increases in revenues and a solid average transactions per machine metric.
The company, which now boasts about 250 ATM machines on the street around the country, says it smashed its previous best quarterly ATM revenue record last quarter by a whopping 65% to post its 9th consecutive record quarter.
Revenues for the entire group encompassing all divisions rose from nearly $800 000 in the December quarter to nearly $1.2m in the March quarter.
Stargoup CEO and Executive Chairman Todd Zani said “Our total revenue in the last quarter was 85% of the revenue achieved in the entire first half year result.”
“This is testament to our disciplined principle of only placing our ATM machines in high quality sites that our experience tells us will yield acceptable capital returns.”
We have successfully migrated all of the Cash Plus ATMs acquired in December and we are now starting to take market share from the independent service operators in the Australian ATM market. Our sales pipeline is looking very good for the next quarter also”, said Mr Zani,
Stargroup say their average monthly transactions per ATM machine continues to be arguably the industry best with the average for the last quarter being 648 transactions a
month per machine.
Mr Zani said “We continue to focus on the ‘transactions per machine’ metric as this is the best guide as to how well we are investing our shareholders capital. All of our KPI trend lines are on the up”.
The company also says that its new found scale has allowed it to renegotiate key supply deals with creditors resulting in a reduced cost of goods of 53% and a reduction in the average payback period per ATM machine from 18 months to just 15 months.
The much anticipated release of Stargroup’s unique “recycler” ATM machine is expected to occur next quarter providing a potential catalyst for the company to muscle into big corporate sites.
The recycler ATM is both an ATM and a banking device that allows customers to either withdraw or bank their money resulting in an exquisite fee generating money loop being created.
Stargroup are also working very closely to integrate their backend EFTPOS IP with two software providers who have up to 50 000 business customers on their books.
The company expects to start rolling out their PAYWAVE compliant EFTPOS offering to those customers in the next quarter.
Mr Zani said “Our overarching strategy is now starting to come together with the ATM division providing the base load income for the business with solid growth and the EFTPOS and financial payments division providing the blue sky opportunity”,
