26th Jul 2018 12:55
LONDON (Alliance News) - PayPoint PLC said Thursday its revenue declined in the three months ended June as expected as it added eBay Inc as a partner for its Collect+ network.
In its first quarter, the in-store payment service saw revenue decrease by GBP700,000 to GBP28.4 million from GBP27.7 million.
PayPoint said the reduction was due to the closure of Simple Payment Service by the UK government's Department for Works & Pensions, the reduced Yodel parcel fees, and the implementation of new accountancy procedure IFRS 15.
In the company's Parcels division, it has added eBay as a partner on its Collect+ network. PayPoint is expecting the move will bring higher parcel volumes, helping to drive further footfall and commissions for retailers.
The number of transactions increased 3.6% in the quarter to 155.6 million from 150.3 million the previous year. A 44% increase in Romania was offset by lower-than-expected transaction volume in the UK of 3.1 million.
In the UK & Ireland, the company saw like-for-like retail services net revenue increase 3.3% - which was driven by service fees increasing 46% to GBP2.3 million.
The number of card payment transactions increased by 14% to 27.4 million. The UK government's ban on surcharges came into effect in January.
Despite the increased transactions, this was offset by the decrease in transaction values to GBP13 million from GBP14 million resulting in a lower payment rebate revenue.
Chief Executive Dominic Taylor said: "I am pleased with PayPoint's performance in the first quarter with further progress made in executing our strategic priorities. We also continue to make good progress in embedding PayPoint at the heart of convenience retail, with PayPoint One now in 9,260 sites, of which 292 are taking our EPoS Pro solution. We remain on target to have PayPoint One in 12,400 sites by March 2019.
"In the UK, we have implemented several improvements to enhance our retailers' experience when working with us,including a new interactive voice response technology. In Romania, growth continued to benefit from the Payzone acquisition and solid growth in the underlying business. The progress over the past three months underpins the Board's confidence in our strategy and our full year outlook remains in line with previous guidance.
"Following the quarter end, we had a technical incident on Saturday 21 July 2018 that impacted, at peak, approximately one-third of our retail terminal estate. During this period, customers were able to undertake services at alternative local sites during the day as we were able to continue to provide coverage across our network to 98% of households. We fully restored services during the course of the day and are confident that it was a one-off, isolated incident and we are sorry for any inconvenience that the outage caused to our retailers and their customers during the affected time."
Shares in PayPoint were up 0.1% Thursday afternoon at 942.00 pence each.
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