Tyro outlook clouded by COVID-19 in first full-year result since IPO

Tyro Payments says its business remains resilient to the impact of COVID-19 on its small business customer base, but the electronic payments solutions provider was not confident enough to provide an outlook for the year ahead.

"Like many of our merchants, COVID-19 seriously disrupted our plans and ambitions for the year," Tyro chief executive Robbie Cooke, said.

Tyro chief executive Robbie Cooke declined to offer any outlook for the company given the risk of further COVID-19 outbreaks. Credit:Peter Braig

"Considering the challenges faced in the second half, our overall result was strong, albeit clearly behind where we had forecast to be at the time of our IPO (initial public offering)."

In its first full-year result as a publicly listed company, Tyro reported record transaction volumes and revenue for the year to June 30, as it booked a $38.1 million net loss that included more than $12 million of expenses related to its IPO.

COVID-19 has overshadowed its prospectus forecasts as retail customers using its payment service – especially hospitality and retail – were hit hard by the lockdown.

While the company did not grow as much as it said it would when it floated, Tyro said it processed a record $20 billion worth of transactions for the year, generating a record $210.7 million in revenue.

The uncertain outlook weighed on Tyro's share price, closing down 6.2 per cent at $3.20 on Tuesday, but it remains well above its $2.75 initial public offering price from December last year. The stock dropped below $1 in March as the sharemarket hit its pandemic nadir.

Mr Cooke had led the company to an initial public offering just months earlier with former Telstra boss David Thodey as his chairman and billionaire Mike Cannon-Brookes as a prominent shareholder.

Mr Cooke said the company will continue weekly updates until the end of the year to provide transparency on its performance, but he did not offer guidance for the coming financial year other than to say the pandemic – and the Melbourne lockdown specifically – will continue to have an impact.

"The COVID-19 challenge continues to feature, with the second wave of the virus significantly impacting our Victorian merchants and the broader consumer sentiment across Australia," Mr Cooke said.

"We remain on high alert as the risk of further outbreaks remains."

Mr Cooke said the company will look at acquisitions if it makes sense but will focus on gaining market share against the big banks, especially in key markets such as health, hospitality and retail.

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