Tyro Payments (ASX: TYR) has reported a first-half profit and positive free cash flow for the first time since going public, indicating that the company is leaving the worst behind. The company’s 1H23 results reflect a profit of AUD 1.1 million, a significant improvement from the 1H22 loss of AUD 18 million, which included EBITDA growing by 601% from AUD 2.8 million to AUD 19.5 million. Statutory group revenue increased by 48% to AUD 220.6 million, and total transaction value rose by 37% to AUD 21.7 billion.
The CEO Jon Davey credited the results to an increased focus on growth, cost management, and delivery excellence, as well as the company’s cost reduction program. Tyro has become a more disciplined and leaner organisation, enabling it to focus on investment in payment and banking solutions, according to Davey.
Furthermore, the company recently settled a class-action lawsuit and is in the midst of a potential takeover from Potentia Capital. Potentia Capital will conduct non-exclusive due diligence for four weeks, keeping a close eye on Tyro’s latest results. Tyro CEO Davey stated that the company had delivered foundational initiatives that would benefit its competitiveness and growth profile.
According to Davey, Tyro has a long growth runway and opportunities ahead of it, with partnerships creating an avenue for increasing market share.
