Emerchants Ltd to fuel growth with prepaid card launch in Italy
(MENAFN- ProactiveInvestors - Australia)
Emerchants Ltd (ASX:EML) has signed a 5-year contract to launch two new prepaid fuel cards in Italy via its wholly owned subsidiary, Store Financial Services UK Ltd.
Store Financial Services (SFS), a provider of prepaid stored value programs in the U.S. and Canada, was acquired by Emerchants in June 2016 for US$35 million.
SFS has been profitable since 2009 and the acquisition will be immediately EBITDA accretive for Emerchants.
In the first 12 months post-acquisition, Emerchants anticipates SFS will generate revenues of $33.3 million and contribute $4.7 million in EBITDA to the group";s results.
The new MasterCard branded prepaid fuel cards in Italy will replace a paper fuel voucher program that totalled €36 million in loads in 2015.
The product is sold at a B2B level to corporate organisations in Italy who provide it to their employees for ad-hoc business travel and as employee rewards and incentives.
It is expected that the replacement process will be completed by the end of FY17 and the program will become a financial contributor to Emerchants in FY18 and beyond.
The company is also launching a reloadable MasterCard chip and pin card, targeted at B2B market for use at participating fuel stations across Europe. <
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