ThinkSmart Limited Update RE: Block, Inc and Notice of Results (8498C)
February 25 2022 - 4:50AM
UK Regulatory
TIDMTSL
RNS Number : 8498C
ThinkSmart Limited
25 February 2022
25 February 2022
ThinkSmart Limited
("ThinkSmart" or the "Company" which together with its subsidiaries is the "Group")
Update RE: Block, Inc and Notice of Results
ThinkSmart Limited (AIM: TSL), a specialist digital payments
platform business, is pleased to note the fourth quarter earnings
report issued by Block, Inc (NYSE: SQ) ("Block") which outlines
significant ongoing growth and progress is being delivered.
ThinkSmart holds a position of 618,750 shares in Block, which
based on a closing price of US$94.99 on 24 February 2022 is valued
at US$58.8m. This shareholding follows the implementation of the
Scheme of Arrangement for Block to acquire Afterpay Ltd, which
ThinkSmart held a former interest in, on 1 February 2022.
The focus of ThinkSmart's strategy - which it will reiterate and
expand upon when it publishes its Half Year Results for the six
months ended 31 December 2021 on 9 March 2022 - is to deliver value
to its shareholders via its holding in Block, and from the Group's
operating business of the managed wind-down of the leasing business
and the provision of the outsourced call centre customer service
and support service to Clearpay. Therefore, ThinkSmart places
emphasis on the public market disclosures, financial results, share
price, and general overall operational performance of Block.
Block Fourth Quarter Highlights:
-- Generated gross profit of $1.18 billion, up 47% year over
year. Cash App generated gross profit of $518 million, up 37% year
over year. Our Square ecosystem generated gross profit of $657
million, up 54% year over year.
-- Cash Card has reached significant scale: there were more than
13 million Cash Card monthly actives in December, which represented
more than 30% of Block's 44 million monthly transacting active
base.
-- Sellers have adopted more of Square's ecosystem over time,
which has helped them grow: in 2021, 38% of Square's gross profit
came from sellers using four or more products, compared to 10% in
2016.
Block Full Year 2021 Highlights:
-- For the full year of 2021, gross profit was $4.42 billion, up
62% year over year, or 53% on a two-year CAGR basis.
-- Cash App generated $2.07 billion in gross profit, up 69% year
over year and 113% on a two-year CAGR basis.
-- The Square ecosystem generated $2.32 billion in gross profit,
up 54% year over year and 29% on a two-year CAGR basis.
Ned Montarello, Executive Chairman of ThinkSmart, said:
"Block is exerting itself as a global leader in payments that is
performing extremely well in a challenging macro-economic
environment. This set of above expectations results gives us
significant confidence in the future growth prospects of Block and,
subsequently, in our ability to generate and deliver value to our
shareholders as a direct result of our shareholding with it."
Notice of Results
As outlined above, ThinkSmart will publish its Half Year Results
for the six months ended 31 December 2021 on 9 March 2022.
For further information please contact:
ThinkSmart Limited Via Buchanan
Ned Montarello
Canaccord Genuity Ltd (Nominated
Adviser and Broker)
Sunil Duggal
Andrew Potts
Tom Diehl +44 (0)20 7523 8350
Buchanan
Giles Stewart
Chris Lane
Toto Berger +44 20 7466 5000
Notes to Editors
About ThinkSmart Limited
ThinkSmart's roots are as a specialist digital payments platform
business. Following the sale of its remaining 10% shareholding in
Clearpay in January 2022, the Group holds shares in NYSE listed
Block, Inc (NYSE: SQ). The Group also provides an outsourced call
centre customer service and support service to Clearpay and is
managing the wind-down of its leasing business.
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END
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