Specialist payments firm Paypoint (LON:PAY) said today that bill and general payment transactions are in line with expectations, marginally up in the UK on the same period last year. In Romania, Paypoint processed more than 3 million bill payments, up over 200%. Retail services which include ATMs, debit / credit card transactions, parcels and mobile phone SIM card sales are up 23% on last year. Mobile top-ups continue to be adversely affected by the operators offering more value for money to consumers. Internet transactions increased to 16 million from 12 million in the same period last year.
PayByPhone, a newly acquired business, is making investments as planned to bring its operations up to PayPoint standards, in particular in sales and marketing and disaster recovery. Transactions processed in the period were 4 million. The National Lottery Commission (NLC) has announced that it is minded not to permit Camelot's proposal for ancillary commercial services. The NLC has asked for further comments by 17th September before it announces its final ruling.
For the period from 29th March 2010 to 25th July 2010, transactions processed were 176 million, up 6% compared to 166 million for the same period last year. Net revenues for the period were up 7% to £26m as a result of the acquisition of PayByPhone and growth in bill payment, internet, and retail services, partially offset by the decline in mobile top-ups. The decline in mobile top-ups has reduced revenues to £61m, down 4% on the same period as last year. Earnings before tax and interest for the period to 25th July are in line with pro-rated market expectations, taking seasonality of trading and the acquisition of PayByPhone into account.
The group has maintained a strong balance sheet. After the payment of the final dividend of £10m and £6m for corporation tax, net cash as expected, at 25th July, was £6m (including client cash of £7m), compared to £15m (including client cash of £7m) at 28th March 2010.
© 2010 Stockopedia Limited and Stockmarketwire.com. All rights reserved
