Tyro Doubles Loss In FY20, Blames Coronavirus, Bushfires
Retail point-of-sale company Tyro has blamed the bushfires and COVID-19 for a $38 million loss, more than double that of last year, which comes despite record $210.6 million revenue.
Tyro, which focuses on claiming market share by offering lower fees to merchants, added more than 3000 businesses over the year, for a total of 32,176; it was also the fifth-largest bank for merchant acquisitions, after only the Big Four.
However, though Tyro more than doubled its cash on hand to $188.3 million over FY20, it experienced a net loss of $38 million. According to Robbie Cooke, CEO and managing director (pictured), the 2019-20 financial year was tumultuous, with the summer bushfires and the coronavirus pandemic providing stark contrasts to its successful IPO in December.
“Most of our efforts in the second half of the year were focused on doing what we could to assist our merchants on their recovery journeys, along with ensuring our business was able to continue providing the high service standards and reliability for which we are renowned,” he said.
Cooke added that, like many of its merchants, COVID-19 had severely impacted its plans for the year.
“In February we had been on track to deliver our Prospectus forecast, however by March we recognised the uncertainty COVID-19 posed and decided to withdraw our forecast.
“The COVID-19 challenge continues to feature with the second wave of the virus significantly impacting our Victorian merchants and the broader consumer sentiment across Australia. We remain on high alert as the risk of further outbreaks remains,” he said.
Despite this, Cooke said, he is optimistic about the company’s outlook.
“Whilst we are not immune to the pressures facing the Australia economy, we have a resilient business model and a determination to continue on our journey of building an ecosystem centred around payments, enhanced by value-adding features and products designed to attract new merchants and retain existing merchants.
“We remain as convinced as ever as to the opportunity in front of us as we remain focused on our purpose of setting businesses free to get on with business by simplifying payments and banking.”