EML Payments - Improving outlook

In H122, EML Payments saw recovering demand in its Gift & Incentives (G&I) division as COVID risk recedes, strong underlying demand in its GPR division, and the inclusion of Sentenial in Digital Payments from Q222. EBITDA and NPATA were affected by EML’s investment in strengthening its compliance function and undertaking the remediation plan to meet the Central Bank of Ireland’s requirements. The company expects a stronger performance in H222 with the benefit of rising interest rates, and action taken to reduce certain costs and introduce new sources of revenue. Our forecasts continue to sit at the lower end of unchanged guidance for FY22.