Reporting Season

Tyro Payments is back in the black after 7 years. Now this broker rates it a BUY

Tue 28 Feb 23, 11:32am (AEST)
A photograph of an Eftpos transaction taking place
Source: iStock

Key Points

  • Tyro Payments has posted a statutory profit for the first time in over half a decade
  • The company’s revenues are boosted by a post-COVID return to out-of-home hospitality and leisure
  • UBS has rated Tyro a BUY but also notes merchant numbers could suffer if CY2023 takes a turn for the worse

ASX-listed business payment solution provider Tyro Payments (ASX: TYR) released its 1HFY23 report on Tuesday, reporting the first profit for the first time in nearly eight years. 

The stock responded positively at the opening bell, but those gains were quickly pared back and by 11:00am (AEST) on Tuesday, shares are up only 0.31% to $1.64. 

Record transaction values of nearly $21.7bn were fuelled by an increased merchant base using Tyro products and a “post-COVID” first half defined by a return to outdoor goods and services.

A summary of Tyro’s payments runs as follows. 

Tyro Payments (ASX: TYR): Largely in line 

Reports 1HFY23: 

  • Normalised NPAT of $3.1m vs. -$11.2m pcp 

  • Revenue of $216.6m in line with expectations 

  • Normalised EBITDA of $19.5m in line with expectations 

  • Transaction value of $21.69bn in line with expectations 

  • Transaction value 1st Jan - 24th Feb at $6.3bn 


  • Adjusted full FY23 EBITDA of $37-41m vs. expectations of $36.7m 

  • Transaction value between $42bn and $43.5bn 

  • Gross profit up to $191m ($187m low estimate) 

In a note published on Tuesday, UBS outlined its first-read thesis on the company’s first-half result. 

Where does UBS stand? 

UBS has rated Tyro Payments a BUY. 

The broker gives Tyro a twelve month price target of $1.95.

As at 11:05am AEST Tuesday, the company’s share price is $1.64.

“Adjusted Free Cash Flow recorded a marginal positive result which was a significant improvement, though capital expenditure was slightly higher than [our expectations] driving a small miss,” analysts wrote. 

UBS’s analyst team also highlighted the possibility of more businesses using Tyro payment product users dropping out of the company’s merchant base if CY2023 presents an undesirable operating environment. 

“Merchant churn will be a figure to watch given a potentially tougher macro outlook,” the analyst wrote. 

Tyro's one year chart
Tyro's one year chart


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Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication.

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