ATM yield up but profit down at Customers
ATM fleet operator Customers will report a fall in earnings of as much as 25 per cent when it releases its financial report for the December 2011 half year.The company reported details of its unaudited management accounts for the half yesterday. Transaction revenue for the six months to December was around A$64 million - three per cent up on the previous corresponding period.It expects to report EBITDA (earnings before interest, tax, depreciation and amortisation) of between $17.8 million and $18.4 million, compared with $23.7 million for the December half in 2010.The expected result includes $3.5 million of losses on new revenue initiatives. These include a New Zealand operation and an outsourcing business.Customers is in the middle of a business restructure. It reduced its ATM fleet from 5861 terminals to 5558 over the past year, after exiting what it described as "non-economic sites".On the positive side, the company said it was making a higher margin on ATM transactions. In the latest half, it made $1.60 on each transaction (based on an average $2.23 charge and a 63 cent rebate to store-owners), compared with $1.55 on each transaction (based on an average charge of $2.06 and a 51 cent rebate) in the previous corresponding period.In October, the company announced it was holding discussions with a potential purchaser. Banking Day has previously reported that this party is Linfox Armaguard.Yesterday it said these discussions were ongoing but were "insufficiently advanced to warrant disclosure".