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Proactiveinvestors is a leading multimedia news organization, investor portal and events management business with offices in New York, Sydney, Toronto and London. Proactiveinvestors operates five financial websites in four languages providing breaking news, comment and analysis on hundreds of... More
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  • Ezeatm Propels ATM Revenue Growth With Foodworks Preferred Supplier Deal  0 comments
    Jan 20, 2013 11:29 PM

    Ezeatm (ASX: EZA) has inked a three year Preferred Supplier Agreement with Australian United Retailers for the provision of ATM related services to its FoodWorks branded stores.

    The past two years has seen the brand go from strength to strength, becoming Australia's largest truly independent supermarket group supporting A$2 billion in annual sales.

    Australian United Retailers has close to 600 supermarkets, food and convenience stores spanning seven states and territories nationally with over 430 of these operating under the FoodWorks brand.

    Brad Slater, business systems manager of FoodWorks, commented: "FoodWorks conducted a three month investigation of ATM providers in Australia, and selected Ezeatm due to their superior ATM technology, proven service history, great customer service and commitment to be the best ATM provider for our stores."

    Ezeatm has advanced from being a regional deployer of ATMs in the Western Australian market to the largest ASX listed deployer of ATMs and an ATM switching provider.

    The company is also the exclusive distributor of cashPod ATMs and ATM products in Australia.

    Ezeatm is committed to working closely with FoodWorks to roll out the Cashpod ATMs throughout the store network.

    Chad Zani, co-founder and sales director of Ezeatm, commented: "FoodWorks has a great business model that focuses on serving the local community, and providing their customers with safe, fast and reliable access to cash is an important part of this service.

    "FoodWorks has also recognised the benefits of the unique advertising of the Cashpod ATM, which puts a printed advertisement in the hands of the ATM user, just before they get their cash, and are looking to maximise their in-store marketing efforts."

    Analysis

    We see significant growth appeal for Ezeatm, as well as potential suitors eyeing the platform developed by the company and possible corporate appeal.

    Ezeatm previously announced an agreement to expand operations into both Indonesia and Nepal and is seeking further overseas growth opportunities.

    The current market valuation of $0.44 per share still discounts the intrinsic underlying value of the business, and makes no allowance for the growth potential in the Indonesian market, or additional revenue streams flowing from ATM advertising, maintenance contracts, pre-paid phone services, loyalty cards, pre-paid debit cards, acquisition of other ATM networks, or additional international opportunities.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

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