Stargroup (ASX:STL) has finished off its transformational FY17 by posting over $2.7 million in revenue for the June quarter, the 14th consecutive quarter of record revenue.
The June quarter revenue was 144% higher than the previous June quarter.
The majority of Stargroup’s revenue is generated from its 2,400+ ATMs under management that process circa 16 million transactions per annum.
Todd Zani, CEO, commented: “We are proud to have achieved another record quarter of revenue, our 14th in a row and our annual total revenue increase of 164% is a significant result.
“This time last year we originally had a milestone revenue target for FY17 of $5million and our actual revenue was nearly double that amount this year and we originally achieved our target in February of this year.”
Stargroup set to double old FY18 revenue target
About 12 months ago, Stargroup set a revenue target for FY18 of $10 million.
More recently, the company provided guidance suggesting that it should easily achieve more than double that target in FY18.
Stargroup continues to deliver growth to investors and it anticipates its current revenue growth rates to continue over the coming financial year.
Stargroup is a dual listed technology company that offers products and services based around automatic teller machines (ATMs) and EFTPOS terminals.
It generates revenue from four business divisions:
- Star Payments: ATM deployment;
- StarPOS: EFTPOS and paywave terminal provider;
- StarATM: Wholesale distributor of ATMs and back office technologies; and
- StarLink: ATM switching and processing.
Of the ATM network that Stargroup services, it owns over 500 of these ATMs.
Stargroup’s growth drivers include:
- Strong reputation and brand name and opportunity to leverage branding into other banking verticals;
- Core business continues to grow with the lower costs and addition of new products;
- Launch of www.stargroup.com.au website and new product offerings in FY18;
- Earnings initiatives signed in FY17 to flow through in FY17 – FY20 and beyond;
- Expansion of sales force and channels in FY18 to accelerate organic growth;
- Distribution of further new technologies via multi-channels; and
- Further earnings to flow through FY18 – FY20 from white labelling of Goldfields Cash Agreement to 70+ deployers.