Half Yearly Report and Accounts
First Half Highlights to 30th June 2019:
- Total audited operating revenue for the 1HFY19 of A$7.5m, up +49% YoY from A$5.0m
- Total revenue including other income was A$8.2m, up +48% YoY from A$5.5m
- 1HFY19 statutory loss after tax was 75% lower YoY at (A$0.7m) versus 1HFY18 (A$2.9m)
- EBIT for the 1HFY19, adjusted for non-cash share-based payments, was (A$0.3m) versus 1HFY18 (A$2.85m)
- The Company reported it achieved a cash flow positive position in mid-May and is pleased to report it achieved both an EBIT and cashflow positive result for the 2QFY19
- Cash balance as at 30th June 2019 was $9.9m (not including $3.1m of options exercised early in July, taking the cash balance to ~$13.0m post the end of the half)
- Client Funds held at the end of the 1HFY19 were approximately A$34.0m
- In the period ending 30 June 2019, the Company continued to elect to expense its software development costs, in lieu of capitalising them
Operational Trading Update:
The Company maintains the current EBIT guidance for FY2019 of $10.7m supported by the following operational updates for activities post 30 June 2019:
- Actual annualised monthly GPTV at 31st July circa A$830m (Up? 96% from 30th June)
- Merchant Services Fee (MSF) from the EU Tier 1 Network continues to grow as expected in line with new merchant onboarding and rising processing volumes (see chart below)
- Group approvals at end of July were up 14% to 240 overall (vs 210 in 2Q report), which is made up of 95 Acquiring approvals (vs 80 in 2Q) and 145 EMA approvals (vs 130 in 2Q).
o In addition, the sales team have built up a significant pipeline of merchant applications which are being processed by the approval/underwriting team.
o The pipeline will see further growth in eMoney and card services.
- On 31st July, iSignthis appointed Elizabeth Warrell as its Group Chief Financial Officer (CFO). Elizabeth has 20 years banking and financial services experience in Australia and internationally, including her previous role with the NAB (ASX: NAB) as the General Manager Finance, Consumer Banking.
- On 8th August, iSignthis announced Australian Principal Member licensing agreement with the Asia Pacific (Singapore) based regional subsidiary of Visa Inc (NYSE:V)
- The operating cost base was revised in August to circa $11.0m pa annualised (from $8.75m), taking effect August 2019 onwards, to include additional new product initiatives and allow the Company to capture further revenue generating opportunities.
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About iSignthis Ltd
Australian Securities and Frankfurt Stock Exchange listed iSignthis Ltd (ASX:ISX) (FRA:TA8) is the global RegTech leader in remote identity verification, payment authentication with deposit taking, transactional banking and payment processing capability. iSignthis provides an end-to-end on-boarding service for merchants, with a unified payment and identity service via our Paydentity(TM) and ISXPay(R) solutions.
By converging payments and identity, iSignthis delivers regulatory compliance to an enhanced customer due diligence standard, offering global reach to any of the world's 4.2Bn 'bank verified' card or account holders, that can be remotely on-boarded to meet the Customer Due Diligence requirements of AML regulated merchants in as little as 3 to 5 minutes. Paydentity(TM) has now onboarded and verified more than 1.5m persons to an AML KYC standard.
iSignthis Paydentity(TM) service is the trusted back office solution for regulated entities, allowing merchants to stay ahead of the regulatory curve, and focus on growing their core business. iSignthis' subsidiary, iSignthis eMoney Ltd, trades as ISXPay(R), and is an EEA authorised eMoney Monetary Financial Institution, offering card acquiring in the EEA, and Australia.
ISXPay(R) is a principal member of Visa Inc, Mastercard Inc, Diners, Discover, (China) Union Pay International and JCB International, an American Express aggregator, and provides merchants with access to payments via alternative methods including SEPA, Poli Payments, Sofort, Trustly, WeChat, AliPay and others.
UAB Baltic Banking Service, a wholly owned subsidiary of iSignthis Ltd, provides API based access to SEPA Core, SEPA Instant and SEPA business scheme, for neobanks, banks, credit unions and emoney institutions, and provides a bridge to the Central Bank of Lithuania's CENTROLink service.
Probanx Information Systems Ltd (Probanx(R)), a wholly owned subsidiary of iSignthis Ltd, is an international banking software company which has been serving the banking industry since the year 2000 by developing comprehensive banking software solutions to financial institutions around the globe. Probanx offers web-based banking solutions using the latest technology and international standard business rules. Our customers are located on five continents and supported from our technical centres in Europe and Australia.
iSignthis' Probanx delivers core banking software, including a fully comprehensive and versatile banking solution for retail, corporate and private banks, emoney and payment institutions, offering capabilities that up until now were affordable only by large commercial banks.
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