EML -38.56%: shares in the card payment business EML were dumped today after the company downgraded guidance for FY22. Revenue guidance was lowered to $225-235m, from $230-250m, and EBITDA guidance was cut 8% to $52-55m. While they said Australia and America were doing well, Europe had struggled with poor execution and regulatory concerns weighing on performance. It was expected to see a pickup in establishment revenue after growth restrictions placed on them by the Central Bank of Ireland were lifted, however, that revenue stream is now expected to come in $4m below 2H21. Foreign exchange rates (~$1.5m) and low rates/delays to bond investments ($1-2m) have also weighed on expectations. It’s concerning that the company stood by guidance just 2 months ago at the half-year result before the Chairman was happy to offload a $600k parcel of shares a fortnight ago. That stinks!
MM holds EML in the Emerging Companies Portfolio
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