Competition coming on strong.... Although DirectCash is the largest ATM company in Canada, they are small potatoes compared to Cardtronics in the United States.
Cardtronics entered the Canadian market in 2011, and today announced another major acquisition. They are big and aggressive and are shaking up the small Canadian market. The likely result for the Canadian market is that margins will continue ot shrink, and the price of future acquisitions for DirectCash will likely increase.
https://www.atmia.com/news/2012/12/12/main/cardtronics-canada-growth-continues-with-acquisition/
Could the foray into Australia hurt DirectCash's Canadian operations by weaking it's focus on domestic operations?
DirectCash's Canadian transactions and revenue both decreased 10% year over year in last quarters results. Will the aggressiveness of another major player in the Canadian Market cause this trend to continue? If so, will dividend payments be affected over time?
DYDD,
TGuy