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Shopping divisional net revenue increased by 6.0% to £16.4m, up from £15.4m in the previous quarter, driven by the growth of its PayPoint One/Mini estate and a positive performance in its cards business.
Service fee net revenue increased by 11.1% to £5m (up from £4.5m), reflecting growth in the number of PayPoint One/Mini sites to 18,963 (31 March 2023: 18,453) and supported by the launch of the company’s next generation device, PayPoint Mini, in November 2023.
Card payment net revenue increased by 6.6% to £8.3m (up from £7.8m), driven by a strong sales performance and further enhancements to the Handepay proposition.
Card payment sites in the EVO estate grew to 19,199 (31 March 2023: 18,397) and the Lloyds Cardnet estate grew to 9,907 (31 March 2023: 9,541), driven by the enhanced proposition and the increased optimisation of sales and retention efforts.
It was a strong quarter of FMCG activity for the company, leveraging its consumer engagement solution, PayPoint Engage, and partnering with Coca-Cola, Philip Morris, Lucozade Energy, Netflix and Xbox.
The company saw a positive year on year growth of business finance via YouLend with over £14m lent in the year to date, supporting its retailer and SME partners during the current economic challenges
Further progress was made on its retailer proposition development, with the rollout underway of 500 sites for click and collect foreign currency, partnering with eurochange.
Its UK retail network increased to 28,900 sites (31 March 2023: 28,478), with 70.0% in independent retailer partners and 30.0% in multiple retail groups.
Nick Wiles, chief executive of PayPoint Plc, said: “This has been another positive quarter for the PayPoint Group and we remain on track to deliver c. £80m of underlying EBITDA for the current year, an important milestone on our journey to achieving £100m EBITDA by the end of FY26, ending the year with net debt below £70m and delivering underlying PBT in line with expectations.
“This performance reflects both the resilience of our businesses and the benefits from the transformation delivered over the past three years as we unlock further opportunities and growth for our enhanced platform and expanded capabilities.”
“In Shopping, the positive momentum in our cards business has continued to grow, with merchant site growth delivered across both our EVO and Lloyds Cardnet estates and a record week delivered in the run up to Christmas with over £150m of processed value.
“Following the successful launch in November of our next generation device, PayPoint Mini, we have also delivered further site growth across the PayPoint network and continued to enhance our retailer proposition to drive additional value and opportunities to earn for our retailer partners, including the initial rollout of our foreign currency service in partnership with eurochange, strong growth in our FMCG campaigns working with major brands like Coca-Cola, and good progress in our YouLend Business Finance product with over £14m lent in the year to date to our SME and retailer partners.”
“In Payments and Banking, we are on track to win and onboard a record level of new business as our integrated digital payments platform, MultiPay, continues to establish itself as a comprehensive payment solution for clients across cards, Open Banking, direct debit and cash.”
