Hard times for ATM operators
The steady decline in the use of ATMs over the past few years is taking its toll on independent ATM operators.Last week two companies in the ATM market, Ezeatm and My ATM, reported losses for the year to June. According to Reserve Bank data, consumers made 63.4 million cash withdrawals from ATMs each month, on average, during the 2013/14 financial year.The number of cash withdrawals was down 4.2 per cent from the monthly average in the 2012/13 financial year. In turn, the 2012/13 numbers were down 4.3 per cent on the 2011/12 numbers.The 2013/14 withdrawals were worth an average of A$12 billion a month. That monthly value was 1.6 per cent less than the monthly average in 2012/13, and the 2012/13 monthly average was 2.4 per cent below the 2011/12 average.Ezeatm increased its revenue by three per cent to $18.7 million and managed to reduce its losses from $3.7 million in 2012/13 to a loss of $1.7 in the year to June.Ezeatm's managing director Doug Rose said in a statement that the improvement in the company's position was the result of a reduction in debt and a rationalisation of business operations.At June 30 the company had 1153 ATMs deployed and active. There were 8.2 million chargeable transactions during the year.The rationalisation of the business included the termination of a distribution agreement in Indonesia.The company also terminated a joint venture agreement that had been set up to install drive-through ATMsIt said it was upgrading its ATM stock, removing superseded models. It expects to add between 110 and 130 new sites in the current financial year.My ATM, which came out of administration in June last year, made a loss of $745,130. This was an improvement on its loss of $1.2 million in 2012/13.The company issued a business plan to coincide with its reinstatement on the ASX. It said it would recommence its old business, renting ATMs from ATM owners and installing and maintaining them in business premises across Australia. Revenue would come from cardholder transaction fees. It had 20 sites, which were retained through the administration.In April My ATM entered into an agreement to acquire iWebgate Technology Ltd, a maker of software designed to increase the security and functionality of transferring information over network services.The company said there was significant potential for IWG's software to be integrated into the My ATM network. The possible benefits of integration were said to include lower costs, greater simplicity and easier external access to its network.