Stargroup has recorded another record month of revenue and remains on track for its twelfth record quarterly performance. Stargroup’s ATM hardware and software sales division posted revenue of $646,277 for October, while total group revenue was $1.1 million – significantly exceeding budgets. The Company pointed to the recent delivery of 100 lobby-style ATMs from NeoICP Korea Inc. and a number of independent ATM deployers acquiring replacement hardware from the group as positive factors.
HIGHLIGHTS
- 445% increase in ATM hardware and software sales in StarATM
- 299% increase in actual annual group revenues in 2016 compared to 2015
- 205% improvement in 2016 YTD ATM revenue compared to 2015 YTD ATM revenue
- 30% increase in projected quarterly revenue on back of organic growth
Stargroup Limited (ASX : STL) (“Stargroup or the Company”) is pleased to announce that once again it has delivered a record month of group revenue in October. The Company is now well on its way to delivering another record quarter of revenue, the 12th in a row.
The Company’s ATM hardware and software sales division, namely StarATM Pty Ltd, had a record calendar revenue month, with revenues of $646,277, which easily eclipsed the 2016 full year revenue result of $150,149. The actual revenues year to date are now $818,779 which is a 445% increase on the full year result from 2016.
The record revenue in the StarATM division follows the recent delivery from South Korea of over 100 of the new version of lobby style ATMs from NeoICP Korea Inc. (“NeoICP”). The new machines have added functionality and improved security measures as part of the ongoing research and development being undertaken by NeoICP and keeping at the forefront of industry standards.
Mr Todd Zani, Stargroup’s CEO and Executive Chairman said “Our Group Revenues were greater than $1.1mil in the month of October which was a record month for the business and significantly greater than originally budgeted for the month.
A number of Independent ATM Deployers (“IADs”) have been acquiring hardware from us in the last few months as part of upgrading their ageing fleets before the end of the year to ensure that their hardware is compliant with the rules mandated by Europay, Mastercard and Visa (“EMV”). This is largely to ensure that their networks and ATMs can accept the EMV chip cards issued by financial institutions.
Historically, NeoICP, via its distributors have sold greater than 3,000 cashPod ATMs into Australia and a great number of these will require upgrading as part of the EMV liability shift. All IADs need to make sure that their hardware is fully compliant and our hardware has always been EMV ready and these upgrades will see further revenue for our StarATM division in both the short term and long term as we assist IADs through this process.
Some of the older ATMs owned by other IADs will need to be replaced to comply with the new standards as they are not upgradeable and the recent deliveries will assist us with meeting the supply demand for other IADs and our own sales pipeline.
As a result, when our actual results for October are combined with our projected revenues for November and December, it is clearly showing that we are on track for another record quarter of revenue which will be our 12th record of quarterly growth, as can be highlighted below.”
