Independent ATM operator Stargroup says last month's move by the major banks abolishing transaction fees from their ATMs has had scant impact on its own network or projected revenues.
Transactions at its ATM network were up 2.2 per cent in the first week after the announcements, while the amount of cash withdrawn was up 2.4 per cent, Stargroup chairman Todd Zani said.
StarATM's sites are chosen after considering their proximity to other ATMs, and are located in "convenient locations" such as pubs, nightclubs, service stations and 7-Eleven stores.
Mr Zani says banks are not interested in these locations for their ATMs, ensuring StarATM is "insulated in the event of bank policy changes".
He concedes share prices dropped by nearly 33 per cent the day after the major banks announced they were scrapping the $2 fee customers were charged for using other banks' ATMs, but put this down to high profile media reports swaying share holders.
Mr Zani says the share price has not fully recovered, adding this highlights "there is still a significant number of investors on our register that don't understand the fundamentals of our business".
He expects the share price to recover once the fine print of the big four bank's fee removal decision comes to light.
Shares in Stargroup plunged to an all time low at open on September 26, dropping by 0.6 cents to 16 cents, two days after the big four banks said they would scrap the fees.
CBA said withdrawals from its ATMs by customers of other banks increased by 50 per cent in the fortnight after its announcement.
Stargroup shares were up by 0.2 cents to 2.1 cents at 1556 AEDT on Wednesday.
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