Tech Article from Australia. Published by Tyro on Tuesday 28 February 2023.

Tyro Payments Limited (Tyro) today announced that it has achieved profitability and positive free cash flow alongside strong transaction value growth and record EBITDA.

Key highlights for H1 FY23
• Delivered foundational initiatives of Tyro Go, Tyro Pro and automated onboarding – will deliver lasting benefits to merchants.
• Statutory net profit of $1.1 million and positive free cash flow of $0.6 million.
• 37% increase in transaction value to $21.7 billion.
• 40% increase in gross profit with record EBITDA of $19.5 million.
• 101% increase in loan originations and 123% increase in banking and other gross profit.
• Operating leverage of 79.6%, down from 95.9% in the prior comparative period.
• Reaffirmed full year guidance for all key operating metrics including EBITDA range of between $37 million to $41 million at a target operating leverage of ~79%.


Commenting on key achievements from H1 FY23.
“An increased focus on growth, cost management and delivery excellence has led to very pleasing first half results, including a record EBITDA and achieving positive free cash flow for the first time as a publicly listed company."

“We have become a leaner and more disciplined organisation. Through our cost reduction program, we are on track to deliver an $11 million annualised cost saving. This has allowed us to streamline our operations and focus our investment to be the leading specialist payment and banking solutions provider for Australian business.”

Commenting on opportunities for further growth in payments and banking.

“Over the last six months we have delivered foundational initiatives which will deliver lasting benefits to our competitiveness and growth profile. These include the Tyro Go reader, the Tyro Pro next generation terminal, and automated onboarding. From these we will build new customer experiences and drive further operational efficiencies."

“We have a long runway of growth and opportunity ahead of us. We are proud to support more than 66,000 customers across the nation, however this still only represents less than 6% of the card payments market. New partnerships are creating another avenue to build market share. We have partnered with Telstra and more recently Australia Post to make Tyro products available in more than 750 retail outlets and business centres. Already 13% of this half’s applications were generated from Telstra, demonstrating the potential upside."

“Our banking solutions are an increasingly attractive opportunity. We believe our lending solution to be the leading cash flow management product in market. Over the last half, we have seen a 101% increase in loan originations and a 73% uplift in banking gross profit. Despite this growth, just less than 10% of
our merchants have a Tyro bank account and in the first half less than 2% of our merchants took out a loan. We are confident we can further leverage our banking license to deepen our customer relationships.”

Commenting on Tyro’s future.

“Our vision is for Tyro to be Australia’s leading financial services technology and innovation company, that backs Australian businesses and reimagines payments and banking. While we are already a leading payments business, our banking license is unique among local and international specialised
payments companies. It means we can deliver faster settlement, help our merchants pay their suppliers, and manage their working cash flow needs with attractive lending solutions.

“Tyro remains as ambitious today as when it was founded two decades ago, and the market opportunity is as compelling as it has ever been. As we look forward, our focus will be on payment and banking product innovation, revenue growth and margin optimisation, operating efficiency, and cost reduction.
This financial year is off to a strong start, and we are well positioned to maintain this momentum into the second half.”


Tyro has had a strong start to the second half of FY23 with transaction values for the period 1 January 2023 to 24 February 2023 lifting 23% on the same period last year to $6.3 billion. Tyro’s banking business generated new loan originations in the first 8 weeks of the calendar year of $22.5 million up 30% on the same period last year.

On a group basis, Tyro generated a gross profit for January 2023 on a normalised basis (post Bendigo gross profit share) of $15.4 million an increase of 39% with EBITDA of $3.6 million at an operating leverage of 76.6%.

Based on the strong start to the second half of the FY23 financial year, Tyro today reaffirmed guidance on all metrics issued in January 2023 with an EBITDA guidance range of $37 million to $41 million at a target operating leverage of 79%.