Interim Management Statement
26 July 2012
Ahead of PayPoint's annual general meeting to be held tomorrow, the board
reports on events, transactions and trading since the last financial year end on
25 March 2012.
Performance(1) for the first quarter period ending 30 June 2012(2)
Overall transactions processed for the 97 day period since year end were 181
million, up 24% compared to 146 million for the 91 day period reported last year
(up 16% on a pro-rata(2) basis).
Revenues of Â£53 million were up 10% on last year. PayPoint's net revenues(3) for
the period were up 21% (up 14% on a pro-rata(2) basis) to Â£25 million as a
result of the strong growth in bill payment and retail services, partially
offset by a decline in mobile top-ups.Â In addition, set-up fees for the Simple
Payment service for the Department for Work and Pensions have been taken to
revenue to the extent of costs incurred, adding 3% to net revenue.
Established business streams
UK and Irish bill and general payment transactions were 21% up on last year (up
14% on a pro-rata(2) basis), with the poor weather across the quarter
contributing to volume. Retail services transactions from ATMs, debit / credit
cards, parcels and mobile phone SIM cards were up 26% on last year (up 18% on a
pro-rata(2) basis). Mobile top-ups continue to be adversely affected by the
reduction in the prepaid sector. UK and Irish retail sites at 30 June numbered
24,430, up 43 since the financial year end.
Internet transactions increased 24% (up 16% on a pro-rata(2) basis) to 21
million over last year, driven by new and existing merchants.
In Romania, we have processed almost 5.7 million bill payments in the period, up
42% on last year (up 34% on a pro-rata(2) basis).Â We have increased our
terminal estate since the year end by 118 sites to 6,848.Â Our Romanian business
continues to deliver profitable growth after reaching breakeven last financial
PayByPhone transactions processed in the period were 5 million, up 27% on last
year (up 19% on a pro-rata(2) basis).
Collect+ volumes have more than doubled to over 1.6 million transactions in the
period, compared to 0.6 million last year. We have increased the number of sites
offering Collect+ since the year end by 124 to 4,845.
The group has maintained a strong balance sheet. Net cash at 30 June was Â£34.4
million (excluding client cash of Â£5.1 million), compared to Â£30.4 million
(excluding client cash of Â£5.1 million) at 25 March 2012. The final dividend of
Â£12.1 million is due for payment on 30 July 2012, subject to approval at our
annual general meeting on 27 July.
Dominic Taylor, PayPoint's Chief Executive, said:
"Overall trading for the period to 30 June 2012 was in line with market
expectations, taking seasonality of trading into account. Our established
business streams are continuing to generate satisfactory growth this year. The
momentum in our developing businesses is also encouraging, which should lead to
the improved returns we seek on our invested capital in these businesses."
1 PayPoint's auditors have not been requested to review the performance or
2 The reported period of 26 March to 30 June 2012 contains 97 days.Â Comparative
data is given for the 91 day time period reported last year (i.e. 28 March to
26 June 2011).
3 Net revenue is revenue less 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. These costs include retail agent commission, merchant
service charges levied by card scheme sponsors and costs for the provision of
call centres for PayByPhone clients.
Finsbury +44 207 251 3801
Rollo Head/Don Hunter
PayPoint is a leading international operator of systems for convenient payments
and value added services to major consumer service organisations in the utility,
telecoms, media, financial services, transport, retail, gaming and public
We handle over Â£12 billion from 659 million transactions annually for more than
6,000 clients and merchants.Â We deliver payments and services through a
uniquely strong combination of local shops, internet and mobile distribution
PayPoint operates branded retail networks in the UK, Ireland and Romania.Â The
network in the UK numbers over 24,000 terminals situated in local shops
(including Co-op, Spar, McColls, Costcutter, Sainsbury's Local, One Stop, Asda,
Londis and thousands of independent outlets) across the UK. Our terminals
process energy meter prepayments, cash bill payments, mobile phone top-ups,
transport tickets, BBC TV licences and a wide variety of other payment types for
most leading utilities and many telecoms and consumer service companies.
In Romania, the branded retail network numbers over 6,800 terminals located in
local shops across the country and is expanding.Â Our terminals process cash
bill payments for utilities and mobile phone top-ups. In the Republic of
Ireland, we have over 500 terminals in shops and Credit Unions processing mobile
top-ups and bill payments.
We also supply added value services to our retail agents to improve the yield
from our network.Â In the UK, we have a consumer parcel drop off and collection
service using PayPoint's retail network through Collect+, a joint venture with
Yodel. This service is available in over 4,800 of our convenience retail agents.
Clients include ASOS, New Look, Boden, House of Fraser, ASDA Direct and Very.
In addition, in the UK, we have over 2,500 LINK branded ATMs, mainly located in
the same sites as our terminals.
PayPoint.net is an internet payment service provider, linking into 16 major
acquiring banks in the UK, Europe and North America delivering secure online
credit and debit card payments for over 5,700 web merchants, including Stan
James, 32Red, Sportingbet, PKR, Betsson, Moonpig, WHSmith, Moneysupermarket.com,
Hungryhouse and British Gas Home Vend.Â We offer a comprehensive set of products
ranging from a bureau service, in which we take the merchant credit risk and
manage settlement for the merchants, to a transaction gateway.Â We offer real-
time reporting for merchant transactions and FraudGuard, an advanced service to
mitigate the risk of fraud for card not present transactions.
PayByPhone is a leading international provider of services to parking
authorities which enables consumers to use their mobile phones to pay for their
parking by credit or debit card.Â It has contracts in the UK, Canada, USA and
PayPoint is widely recognised for its leadership in payment systems, smart
technology and consumer service. Our high quality services are backed by a 24/7
operations centre with dual site processing for business continuity.
PayPoint sustains its competitive differentiation by aiming to meet clients'
payment needs, not just through a wide spectrum of payments, but also with
products that span payment channels.Â For example, PayCash enables cash payment
for internet transactions at PayPoint retail agents and our home vending
solutions allow consumers to pay across the internet as well as through our
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Source: Paypoint plc via Thomson Reuters ONE