PayPoint on track in the third quarter

Payment systems operator PayPoint said that trading was in line with expectations in the third quarter, as a slowdown in revenue and transaction growth was the result of seasonality.

Payment systems operator PayPoint said that trading was in line with expectations in the third quarter, as a slowdown in revenue and transaction growth was the result of seasonality.

Transactions processed in the three months to December 31st totalled 193m, up 5% year-on-year. This compares with the 345m transactions processed in the first half, up 18%.

Meanwhile, revenues rose 4% to £55m during the period, down from the 6% growth in the first six months of the year.

Nevertheless, Chief Executive Dominic Taylor said: "Overall trading since September 30th 2012 was in line with market expectations, taking seasonality of trading into account.We are pleased with the growth across the group and continue to focus on driving improved returns on our invested capital."

Net revenues, which exclude retailer commission and the cost of mobile top-ups, gained £28.7m.

The firm saw strong growth in bill and general payments and retail services during the period, though this was partly offset by a decline in net revenue from mobile top-ups. Bill and general payment growth included set-up fees for the Simple Payment services for the Department for Work and Pensions which contributed six percentage points of the overall growth in net revenue.

Consumer parcel drop-off and collection service, CollectPlus, the company's joint venture with Yodel, saw volumes grow by 89% to 2.3m transactions during the period.

Meanwhile, internet transactions rose by 18% to 24m year-on-year.

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