EML Payments - Update on Q3 trading and regulation

EML Payments’ Q321 trading update confirmed that revenue for the first nine months (9M) of 2021 was 65% higher y-o-y and EBITDA was 62% higher (margin 30.5%). The company also gave an update on the regulatory issue in Ireland, confirming ongoing dialogue with the regulator. We have updated our forecasts to reflect one-off costs relating to this issue and revised the mix of revenue for FY21 based on Q321 performance. This results in lower GDV and revenue forecasts for the General Purpose Reloadable (GPR) and Virtual Account Numbers (VANs) divisions in FY22/23 and reduces our NPATA forecasts for both years.