PayPoint reports revenue decline but rise in profits

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PayPoint has announced a decline in net revenue for the six months to September 30, but said strategic plans had helped bring in a 4.0% rise in pre-tax profit.

During the period, a total of 1,692 new PayPoint One sties were installed across the UK, taking the total to 11,246, with Epos Pro live in over 400 sites.

Net revenue of £55.6m was down by 1.6% on a reported basis, but with underlying growth of £1.8m. Service fee revenue has grown by 39.8% to £4.8m.

PayPoint chief executive, Dominic Taylor, said he was “pleased with the progress” PayPoint had made over the past six months.

“We are executing against the roadmap and our strategic priorities outlined in May, delivering underlying net revenue growth of 3.2% and reported profit before tax growth of 4.0%,” Taylor said.

“The business also continues to innovate in an evolving retail and payments environment, developing new technologies and propositions that are transforming the way our customers operate and run their businesses.

“Service fee revenue from PayPoint One also grew by 39.8% in the period, contributing to the increase in underlying net revenue, with the new terminal providing tangible benefits for our retailers, enabling retailers to drive increased profitability and efficiency in their stores.

The PayPoint and eBay partnership, enabling eBay sellers and buyers to access the Collect+ network for click and collect parcel services, was rolled out to 2,500 Collect+ sites.

“In parcels, our new carrier partnership with eBay is now live in 2,500 sites ahead of the festive season and we remain focused on delivering at least two additional carriers in 2019,” Taylor added.

“E-money and MultiPay volumes grew strongly and a further six clients were secured including one of the UK’s fastest growing digital bank challengers, Monzo.

“The good performance of the first half underpins the Board’s confidence that as PayPoint’s growth drivers continue to develop there will be progression in profit before tax for the full financial year to 31 March 2019.”

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