Company Interview / Cuscal acquires Indue as profit slips

Key Highlights:

Cuscal revenue up 6% to $492.5 million, profit at $28.7 million (ASX:CUS) $75 million acquisition of Indue supports growth and cost efficiency Dividend policy maintained with 5.5c final payout this year AI applications focus on fraud detection and service improvements

Craig Kennedy from Cuscal highlights a robust performance, with the company posting a 6% increase in revenue to $492.5 million for the financial year, while profit reached $28.7 million. Kennedy emphasises the company's ability to meet all key targets set out in its prospectus, which is reflected in positive market sentiment. Shareholders are set to receive a fully franked final dividend of 5.5 cents per share, and Kennedy confirms Cuscal will maintain its consistent dividend policy, targeting a payout ratio of 40-60% of statutory results.

Kennedy points to Cuscal’s $75 million acquisition of Indue as a pivotal step, aiming to combine complementary client bases and services while removing duplicated infrastructure and costs. He sees the integration as straightforward, noting mature migration processes are in place to avoid client disruption. The deal remains subject to regulatory approvals, but is anticipated to boost efficiency and generate further capital for reinvestment in growth opportunities.

Kennedy foresees rapid evolution in Australia’s payments landscape, driven by global entrants and technological advances. He outlines the use of AI primarily for fraud prevention and operational efficiency, with future products likely shaped by developments in AI-assisted commerce. Kennedy adds that Cuscal’s domestic focus shields it from global volatility, and changes to surcharging regulations could bring modest benefits for transaction processing volumes.