ENCASH revenue up 77% in 2010

Posted on March 04, 2011 06:54:37 PM

ENCASH revenue up 77% in 2010

Independent ATM deployer Electronic Network Cash Tellers, Inc. (ENCASH) reported a three-fourths increase in profit in 2010, as it set up more automated teller machines in the provinces.

"Our revenue last year amounted to P64 million, higher than the P36 million we made in 2009 due to having the right business partners, right ATM locations and tight management compliance," ENCASH President Eric J. Severino told BusinessWorld in a phone interview on Friday.

He said EBITDA -- earnings before interest, taxes, depreciation and amortization -- amounted to P13 million last year.

ENCASH with its 139 rural bank and cooperative partners, had a total of 263 units in 51 provinces last year, up from 85 partners and 171 ATMs in 2009.

The number of ATMs increased to 272 units as of end-February.

Mr. Severino said, "the more ATM machines we deploy, the more transactions could take place, which means higher revenue for us."

ENCASH charges a "convenience fee" that ranges from P28 to P99 for every transaction.

"The farther the location of our ATM, the higher the fee we charge," Mr. Severino said.

The total cash dispensed last year increased by 62% from a year ago, he added.

"We have two types of location: the ’in lobby’ where ATMs are placed inside the banks and the ’through the wall’ where ATMs are put outside the premises of a bank," he shared.

Mr. Severino said ENCASH targets to deploy around 200 to 300 ATM units this year. -- Ann Rozainne R. Gregorio

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