SPT - Splitit Payments

[Knobby22]

Terrible set of numbers.
They will need a raising soon,
The merchant list, not one big name and they used some of the names previously.
I also love the fact that none of the directors own any shares.

 

[Ann]

Up 8.22% today...

Splitit joins EFTPay to offer instalment payment platform in Hong Kong

Consumer finance provider Splitit Payments (ASX: SPT) has partnered up with digital payments business EFT Payments Asia (EFTPay) to offer Splitit’s monthly instalment payment solution to merchants in Hong Kong and Macau.

Splitit, which listed on the ASX at the start of the year following a heavily oversubscribed IPO raising $12 million, said the new partnership would enable the company to expand its presence in the Asia Pacific region.

EFTPay is one of the key partners of Alipay in Hong Kong, providing digital wallet services to merchants including hotel chain Marriott, fashion retailers UGG, Kate Spade and Sunglass Hut and cosmetics brand Estee Lauder.

Some of these services include merchant acquiring, point-of-sale system integration, payment gateway provision, a service counter app and technical support. More...

 

[Knobby22]

Down to 68c now.
As I predicted,had a raising.

 

[peter2]

All the hype has left this stock and price has tumbled.
Only 48 shareholders decided to pay 0.80 in the recent SPP when the price was lower in the market.
It had to happen with so many BNPL options available.

 

[barney]

Not a happy chart at the moment

 

[greggles]

Not a happy chart at the moment

It's moving up a little today on the back of this morning's announcement that SPT has entered into a three-year partnership agreement with GHL ePayments Sdn Bhd, part of leading payment service provider GHL Systems Berhad, to offer Splitit's instalment solution to more than 2,000 online merchants in Malaysia, Thailand, Indonesia and the Philippines.

Still, they need to stem the cash burn and operating losses before they are going to be taken seriously. The last quarterly was a huge disappointment with revenue of $322,000 and a loss of $2.54 million.

 

[barney]

It's moving up a little today on the back of this morning's announcement

Today's Volume was also positive …… this is the second move off the lows in 4 days …… The depth of the retrace (assuming there will be one) on a second move higher is always a good lead to where a stock might be heading in the short term …. watchlist

 

[barney]

Up another 10% today so far on reasonable Volume ….. A few days can make the world of difference at the Spec end.

 

[greggles]

SPT recovering a little today, bouncing off a bottom at 40c that's been forming all week, following the release of their FY 2019 financial results.

After a closer look at those results I don't see much of a reason for having an increase in confidence in the viability of their business. Here's a screenshot of the summary:

Yes, revenue is up compared to the same period last year but operating expenses have blown out and the net loss has deepened. Last year they only spent $1.63 million to make $127,327. This year they spent $4.79 million to make $721,381.

I don't see how this is a sustainable business on the current numbers. They need to grow revenue faster while cutting costs and that doesn't appear to be happening.

 

[barney]

After a closer look at those results I don't see much of a reason for having an increase in confidence in the viability of their business. Here's a screenshot of the summary:

I don't see how this is a sustainable business on the current numbers.

I thought the same thing. The IPO proceeds ($12 million) and the follow up Cap Raise ($30 million) seem to have distorted the fact they are burning cash … Probably go up another 30% next week now

 

[bigdog]

Not looking VG from a 12 month high of $2.00 on March 11 2019

 

[barney]

Not looking VG from a 12 month high of $2.00 on March 11 2019

Murphey's Law of course …. As soon as we start ragging a Stock out it rallies

Currently up another 12.5% today to 58.5 cents. Probably no Sellers left

 

[Knobby22]

Just had another look - Wow - all these research and development expenses, way more than the revenues, I wonder who's getting those.
0.7mil revenue, 4.7mil outgoings.
Done well in September....Run rabbit run.
https://www.bing.com/videos/search?q=Flanagan+and+Allen+Run,+Rabbit,+Run!&docid=608054591018567884&mid=E832A27D37675520A42AE832A27D37675520A42A&view=detail&FORM=VRAASM

 

[bigdog]

ASX announcement today 31/01/2020 8:32:25 AM Quarterly Report (Appendix 4C) (uploaded)

Currently share price down 8.76% after reported that revenue and active customer numbers actually fell quarter-on-quarter.

The stock, which rocketed 800 per cent in the six weeks following its ASX debut January 2019 and dropped as much as 18 per cent to 56 cents on Friday morning after the release of its quarterly report to the ASX.

SPT reported record merchant sales volume generated on its platform, but the company’s revenue fell 7% to $US433,000 ($645,000).

Its active shoppers on the platform fell 6% to 118,000 for the quarter ending December 31.

573

 

[Knobby22]

ASX announcement today 31/01/2020 8:32:25 AM Quarterly Report (Appendix 4C) (uploaded)

Currently share price down 8.76% after reported that revenue and active customer numbers actually fell quarter-on-quarter.

The stock, which rocketed 800 per cent in the six weeks following its ASX debut January 2019 and dropped as much as 18 per cent to 56 cents on Friday morning after the release of its quarterly report to the ASX.

SPT reported record merchant sales volume generated on its platform, but the company’s revenue fell 7% to $US433,000 ($645,000).

Its active shoppers on the platform fell 6% to 118,000 for the quarter ending December 31.

View attachment 100032

573

If the directors were honest, they would just admit the company has no future, close it down and give the remaining cash back to shareholders.

 

[Movendi]

Up 108% today. New mastercard partnership.
Possibly now something more viable long term.

 

[Dona Ferentes]

Up 108% today. New mastercard partnership.
Possibly now something more viable long term.

Splitit is different to Afterpay (and its other BNPL peers), because, in effect, those companies lend the customers the full amount of a purchase at the checkout, and then allow that purchase to be paid off in instalments. Instead, Splitit allows customers to pay with an existing credit or debit card, holding the full amount on their card and taking an instalment each month. The customer can apportion the total cost across as many interest-free payments as they like; the Splitit system charges their credit or debit card every month until their payment is completed.

Splitit does not finance the consumer into the purchase, meaning it does not make short-term consumer loans. This means that worries about credit risk and bad-and-doubtful-debt build-up – concerns that have swirled around the other BNPL stocks – are not business risks for Splitit. Thus, it has a lower-risk business model than the others.

It is the same value proposition as Afterpay and Zip Co, but use of Splitit’s technology requires no application, registration or credit check; thus, Splitit does not need to monitor and/or prevent payment defaults or bad debt-related risks, and is not subject to regulatory oversight or licensing requirements associated with providing new credit.

Splitit’s source of revenue is transaction fees, paid by the retailer when a customer uses the Splitit payment option online or in the physical store: Splitit charges an average rate of 3% of each transaction. There are no late fees. This means that the total value of transactions and number of customers using the platform are the main revenue drivers for Splitit.

Major card issuers appear to be very happy to work with SPT, announcing a partnership with Visa in March, to help accelerate the distribution of instalment payments for merchants, and to “explore further opportunities relating to new product development.”

And recently, helping the S/P surge, signing of a multi-year agreement – with an initial five-year term – with Mastercard, to accelerate the adoption of Splitit’s instalment solution around the world. Splitit will leverage Mastercard’s network of partners to extend and scale instalment functionality to consumers and merchants. Splitit will integrate its instalment solution with Mastercard’s suite of technology as a network partner to enable merchants to deliver seamless and secure consumer experiences at checkout, both in store and online.

 

[citac]

Been watching spiltit from day one, it still has potential however i am only seeing partnership after partnership without an end to capital raising in sight.

 

[hhka]

Market predictions
WorldPay, a subsidiary of financial services giant FIS, released its Global Payments Report, last month, which predicts the BNPL boom to continue. Although the report does not appear to account for the expected economic downturn as a result of COVID-19.

According to the report, the number of BNPL users will pass 4 million by 2023 when Australia’s ecommerce market will be worth US$47 billion. The share of BNPL payments of ecommerce transactions will jump more than 166 per cent in that time.

I have attention on SPT, customer numbers and transaction volumes are increasing rapidly. Splitit reported 362,000 total shoppers in the last September quarter, with 186,000 active shoppers. This was a 48% increase year on year. Over the same period transaction volumes increased 214% to US70.9 million.

IMO, SPT has a lot of potential to grow in period 2021-2023. The SP will be on par with Z1P soon.

 

[debtfree]

Quick update