EML continuing on its growth trajectory

Emerchants (ASX:EML) has delivered healthy returns for Pie since it became a core position last year. The stock is up almost 40% year-to-date. The company provides prepaid payment solutions to customers via both reloadable and non-reloadable cards in Australia, Europe and the US. It earns revenue through fees for establishing new cards, transactions, interest received on stored value and breakage. EML has been growing with a lot of momentum, and we don’t think this will be abating anytime soon. The wagering market is extremely competitive and industry players are focused on keeping up with the competition when it comes to functionality and product. Once EML signed up its first customer in Australia (Ladbrokes), it took all but eighteen months to sign up major competitors. EML continues to drive penetration within existing clients, sign up new domestic customers and grow abroad. The company recently signed Bet365, the largest operator in the UK with 25% market share, and is already in discussions with other operators. We believe EML has many opportunities at its disposal to continue on its growth trajectory.