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(Alliance News) - PayPoint PLC on Wednesday said the ending of a British Gas contract and reduced frequency of larger payments led to a 6.6% drop in first-quarter revenue, but the payments services provider said it is seeing evidence of recovery in activity across several services.
Net revenue for the three months to June 30 decreased to GBP26.8 million from GBP28.7 million a year ago. The reduction included a GBP1.1 million net revenue in the prior year from a contract now ended with British Gas, part of Centrica PLC.
UK retail services net revenue increased by 10% to GBP10.8 million due to the increase in card payments and service fees from the PayPoint One roll-out.
First-quarter UK bill payments net revenue decreased by 28% to GBP8.2 million. Excluding the British Gas contract impact, net revenue decreased by 20% and transactions decreased by 25%, primarily as a result of consumers making larger payments, less frequently, during the Covid-19 lockdown, as well as warmer weather compared to prior year.
Transaction volumes and sites recovered well from the April lows, Paypoint said.
Top-ups and eMoney volumes have recovered well due to strong eMoney performance and card payments have performed strongly with June transactions 79% above prior year, the company added. ATM volumes continue to recover, although this recovery remains dependent on a broader recovery in the economy.
Chief Executive Officer 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."
Shares in Paypoint were up 7.6% at 607.00 pence each in London on Wednesday morning.
By Tapan Panchal; tapanpanchal@alliancenews.com
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