DearShareholder

I am pleased to present the ISX Financial EU Plc (unaudited) results for 2021 as part of our Quarterly Update process.

In 2021 the group saw receipts from customers increase 6.8% to €22.6 million, as Group focused on diversifying its revenue away from card acquiring, towards lower cost SEPA instant and batched interbank payments, in turn creating a multi-rail ecosystem centred on our flykk® service.

ISX Financial EU Plc is projected to return a Net Profit After Tax (NPAT) in the order of €1.4m, based upon an EBITDA in excess of €5.4m.

In 4Q21 the business continued to see a shift in volumes towards SEPA instant and batched interbank payments network (SCT, payments per the graph), with total SEPA volumes up 23% versus 3Q21 and up 83% versus 4Q20.

This growth has been driven by customer preferences, with customer preferring instant and batched SEPA interbank payments over cards, due to

  - Lower cost versus a credit card payment

  - SIIN notification, so Merchants can be certain they have received the funds

  - No chargebacks

  - Consumer payment preferences skewing away from cards

  - flykk® ecosystem

The Group continues to focus its growth in regulated online gaming, with Entain Group and William Hill entering into further agreements for additional services, which are expected to contribute to the bottom line by mid 2022.

Card acquiring volumes in the quarter were up 18% versus 3Q21, but remained lower than 4Q20 down (18%).

flykk® volumes in the quarter remained strong, as we continue to see growing interest in the flykk® product from merchants.

In 2021 net cash generated in operating activity increased 15% to €5.8million, due to increased revenues. Cash and cash equivalents at the end of the year was €5.2 million, down from €8.5 million in 2020 mainly due to financing activities, including repayment of intercompany debt and payment of dividends to its prior parent company during the period.

I expect that growth during 2022 will continue at a steady pace, whilst allowing the company to expand into other sectors/geographies and also maintaining profitability.

Yours faithfully

N J (John) Karantzis
Managing Director, ISX Financial EU Plc