Change Financial Limited

ASX:CCA

Change Financial Limited

ASX:CCA
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Forum Topics CCA CCA Card issuance - A big deal

Pinned straw:
secondtake88
Added 2 years ago

Today's announcement .. minimum rev of $2.9m AUD per year for five years. About a 25% increase in rev for cca. Bear in mind that cca alreadt manages 16m+ cards globally .. but none of those are as issuer. Vertexon is cca's card issuance and management business and is about 50% of rev. So call it currently rev per card of 5m/16m = $0.31c / card. Whereas the cards announced today will be delivering $2.9m rev on 35,000 cards. Rev per card of $82. Where would rev land if cca can convert 5% of their current cards to issuance cards ? You do the maths ... a company roadshow is about to commence btw and I'd expect this to be the core inference ...
secondtake88
2 months ago

A solid report from Change last week.

The key points from the webinar:

  • the company has moved from investment to commercialisation.
  • the businesses are scaling up with growth resulting from both existing clients and new client wins.
  • the company’s cost base is basically fixed.
  • The company to report later this financial year that it is profitable on a cash basis.


Some snippets from elsewhere:

https://australianfintech.com.au/change-financial-announces-increase-in-half-year-revenue-nudging-a7-million/

https://businessmirror.com.ph/2024/02/28/fastest-growing-in-phl-globally-accepted-maya-card-sets-new-industry-record/

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secondtake88
8 months ago

Currently CCA has one client (in NZ) running CCA issued and managed cards.

However until about last week those cards did not have full EFTPOS connectivity.

That's now resolved I believe - so the cards are being used and the money is coming in.

Over the next couple of months we will see the two new Australian clients, the other four existing NZ clients, and the 2 existing USA clients, all moving to CCA issuance.

Additionally, the CTO has stated that 'the pipeline (of prospective clients) is hectic across both business divisions and across all geographies'

And costs are under very tight control. And transactional revenues will increase from all clients.

I'm fully expecting a major step up in cashflow and EBITDA this side of Christmas.


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