(Alliance News) - PayPoint PLC reaffirmed its full-year expectations on Thursday following a third quarter update that saw revenue rise in all divisions except Payment & Banking.
The Hertfordshire, England-based payment services provider said that group net revenue increased to GBP29.6 million in the three months to December 31, the company's third quarter. This represented a 21% year-on-year increase from GBP24.4 million.
PayPoint's Shopping division generated net revenue of GBP14.5 million, up 58% from GBP9.2 million the previous year. The company said this was driven by a positive contribution from its Handepay and Merchant Rentals card payment businesses as well as the continued growth of its PayPoint One estate.
The net revenue of its E-commerce division increased 36% to GBP1.5 million from GBP1.1 million the previous year. PayPoint explained that this was driven by a strong performance through the Christmas peak trading period.
Net revenue in the company's Payment & Banking division decreased by 3.9% to GBP13.6 million from GBP14.1 million. This was driven by a continued reduction in cash bill payments and top ups, PayPoint explained.
At December 31, PayPoint had net corporate debt of GBP47.5 million, down from GBP68.2 million at March 31.
Chief Executive Nick Wiles said: "We have continued to perform well over the quarter despite the impact of exceptionally mild weather on our energy business, and with a strong performance from our e-commerce business through the key Christmas peak trading period, in terms of both parcel volumes and customer satisfaction. Our cost management and capital discipline over the quarter has also remained strong.
"We continue to demonstrate agility and drive to respond quickly to changing consumer demands and new opportunities in our markets. As a result, we remain well-placed to support our partners in response to the wider trends that have accelerated through the pandemic, including the continued shift from cash to digital payments, the growing demand for online shopping fulfilment and the increase in shopping local. The board's expectations for the full year remain unchanged."
Shares in PayPoint were up 0.4% at 693.60 pence on Thursday morning in London.
By Heather Rydings; heatherrydings@alliancenews.com
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