ATM fees may rise for Customers
A subdued second-half profit for ATM operator Customers Limited may be a pointer to a further rise in fees, at least on independently-owned automatic teller machines, over the coming year.Customers operates the largest ATM fleet in Australia, with 5750 terminals as of June 2011.Company management emphasised a "renewed focus on profit maximisation of the existing fleet" in its presentation to investors yesterday.The firm has already lifted fees on many ATMs in its fleet to as high as $2.50, from $2, over the last year. It said the average revenue per transaction earned in the financial year was $2.12, a number held down to a degree by offering no-fee withdrawals at 310 ATMs in flood-affected areas earlier this year.The company reported a net profit of A$7.2 million in the June 2011 half, down from $11.6 million in the December half. Earnings before interest and tax fell one fifth to $9.6 million in the half. EBITDA fell five per cent, while revenue fell two per cent, to $62 million.Customers continues to buy up operators of smaller fleets with unsustainable business models, though remaining competitors are a source of cost pressure in the form of rising rebates paid to merchants.The firm bought out Keycard, Yourcash and Crown ATM during the year, and has since bought part of the fleet of MyATM.Outsourcing of ATM management for other ATM owners, such as Bank of Queensland, is one of three key strategies for growth in the payments space, Customers said.Expansion in New Zealand (where merchant ATMs are still uncommon) is a second focus for the group.Development of a pre-paid debit card is a third initiative, one which may help the group to preserve revenues in gaming venues, where it is having to remove ATMs as regulators clamp down on problem gambling.Customers plans to pay a final dividend of two cents a share, down from an interim dividend of three cents, and a debut dividend of eight cents a share paid this time last year.