PayPoint on track after 'positive' quarter

24th Jan 2024 11:48

(Sharecast News) - PayPoint reiterated its full-year outlook on Wednesday, after the payments specialist reported a "positive" end to 2023.

Updating on third-quarter trading, the tech firm - which provides a range of in-store and online payment services - said group net revenues jumped 60% in the three months to 31 December, to £52m.

Within that, net revenues in its payments and banking unit fell 6% to £13.9m, after growth in digital payments platform MultiPay was offset by the government's Energy Bill Support Scheme coming to an end.

In contrast, revenues in the shopping division rose 6% to £16.4m, and by 34% in the e-commerce arm to £3.1m.

PayPoint's Park Christmas Savings brand also returned to growth for the first time in six years, with billings up 1% at £162.6m.

As a result, PayPoint said it was on track to deliver full-year underlying earnings before interest, tax, depreciation and amortisation of around £80m, and underlying pre-tax profits in line with expectations.

Underlying net debt was also forecast to come in below £70m.

Nick Wiles, chief executive, said: "This has been another positive quarter for PayPoint and we remain on track to deliver around £80m of underlying EBITDA, an important milestone on our journey to achieving £100m EBITDA by the end of the 2026 full-year.

"This performance reflects both the resilience of our businesses and the benefits from the transformation delivered over the past three years.

"Planning for the 2024/25 financial year is well underway to achieve growth ambitions and build on the strong progress across the business."

As at 1145 GMT, shares in PayPoint were up 4% at 552.47p.