Parcel delivery transactions have driven growth for PayPoint over the first quarter of the year.
PayPoint posted a 5% year-on-year increase in overall transactions for the 91 days to 30 June 2014, increasing from 179.9 million to 189.3 million. Revenue increased 4% from the previous year while net revenue (less the cost of mobile top-ups) grew 9% from £27m to £29m.
Retail services transactions which include ATM, debit/credit cards, parcels, money transfer and mobile phone SIM cards grew 29% compared to last year while mobile phone top-ups continued to decrease due to the long-term decline of the prepaid mobile sector.
Its Collect+ volumes increased by 43% year-on-year to over 4.0 million transactions from 2.8 million. The number of Collect+ sites declined over the period by 67 to 5,515 however it plans to expand the network in time for Christmas.
PayPoint’s UK and Irish bill and general transactions were down 4% compared to the same period last year, which was attributed to lower gas consumption.
Chief executive Dominic Taylor said trading was in line with company expectations and predicted progress later in the year once the merger of its internet and mobile phone transaction operations gained momentum.
“Our retail businesses are continuing to generate satisfactory growth this year,” he said. “Combining the mobile and online businesses under the unified group brand should unlock better growth opportunities for the group over time. We have increased development, marketing and IT spend in the first half, the benefits of which are expected in the second half of the year and therefore, profit growth will be lower than net revenue growth in the first half.”