PayPoint trading in line, revenues up 3%

PayPoint, the FTSE 250 electronic payment services provider, was able to maintain revenue growth of 3% in the third quarter, with both its established and developing businesses showing robust trading.

PayPoint, which provides payment collection and ATM networks across the UK, said that revenue totalled £52.6m in the three months to December 25th, up from £51m the year before, as overall transactions processed for the period rose 13% to reach 183m.

Revenue in the first half rose 3% year-on-year to £95.9m.

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UK and Irish (established businesses) bill and general payment transactions rose 13% year-on-year, while retail services transactions (from ATMs, debt/credit cards, parcels and SIM cards) increased by 23%. Internet transactions rose 22% to 21m, but the firm has yet to see this benefit revenue growth - this is expected in the new financial year.

In Romania (developing business), processed bill payments jumped 53% to 5m, with money transfer with Western Union being launched as its first retail service in the country. "Encouragingly, our Romanian business has made a small profit in the quarter," the firm said.

According to the company's Chief Executive Dominic Taylor, "overall trading for the period to 25 December was in line with market expectations, taking seasonality of trading into account, with group net revenues up 8% over the same period last year."

Net revenue is the total revenue minus the cost of mobile top-ups and SIM cards where PayPoint is principal and costs incurred by PayPoint which are recharged to clients and merchants.

Net cash at the end of the quarter stood at £21.3m, up from £18.5m at September 25th.

BC