Paypoint Q1 revenues decline amid weakness in bill payments
Payment services group Paypoint reported a decline in first-quarter revenue on Wednesday as strength in the UK retail services business was offset by weakness in bill payments.
FTSE 250
19,824.16
16:59 26/04/24
FTSE 350
4,470.09
16:59 26/04/24
FTSE All-Share
4,423.59
17:14 26/04/24
PayPoint
513.00p
16:49 26/04/24
Support Services
10,641.76
16:59 26/04/24
In the three months to the end of June, group net revenue fell 6.6% to £26.8m. The drop included £1.1m net revenue in the previous year from the British Gas contract now ended.
UK retail services net revenue rose 10.3% to £10.8m, driven by the increase in card payments and service fees from the PayPoint One roll-out. However, bill payments revenue was down 28.2% to £8.2m. Excluding the British Gas impact, net revenue decreased 20.4% and transactions fell by 25.0% as consumers made larger payments less frequently during the Covid-19 lockdown.
Paypoint highlighted "strong" card payment volumes throughout the period and a "progressive" recovery in transaction volumes from April low points in UK bill payments, UK top-ups and eMoney, ATMs and parcels.
In Romania, net revenue grew 8.2% to £3.8m, primarily through margin improvement.
Chief executive Nick Wiles said: "We have delivered a solid first quarter performance during a very challenging period for the business and the economy as a whole.
"I am proud of the way the business has responded to recent challenges, and as we look ahead there is evidence of recovery in activity across a number of our services from the low point in April. We are now working hard to build on these positive signs and identify additional opportunities across our business."