Positive quarter for PayPoint with nearly 60 per cent rise in revenue

PayPoint Group has reported a strong results for the quarter ended on 31 December 2023, with net revenue increasing by 59.8 per cent in the quarter to £52 million.

Net revenue for the PayPoint segment has increased by 2.8 per cent to £33.4m.

Nick Wiles, chief executive said the business is on track to deliver around £80m of underlying EBITDA, net debt below £70m and underlying PBT in line with expectations for the 2024 fiscal.

“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,” Wiles said.

Shopping divisional net revenue increased by 6 per cent to £16.4m, driven by the growth of PayPoint One/Mini estate and a positive performance in the cards business.

PayPoints’ UK retail network increased to 28,900 sites (31 March 2023: 28,478), with 70 per cent in independent retailer partners and 30 per cent in multiple retail groups.

The group’s e-commerce divisional net revenue increased strongly by 34.3 per cent to £3.1m and transactions grew by 54.3 per cent to 26.2 million through the e-commerce technology platform, Collect+. This division has now processed over 68.3 million parcel transactions year to date, surpassing the 56.4 million transactions processed over the whole of FY23.

Collect+ outperformed the overall e-commerce market, which experienced a 1.9 per cent decline year on year over Black Friday week. Collect+ network grew to 11,730 sites (31 March 2023: 10,514)

Payments & Banking divisional net revenue decreased by 5.5 per cent to £13.9m, with further growth in the digital payments platform, MultiPay; offset by the expected impact of the Energy Bills Support Scheme (EBSS), which was a one-off activity that ran in the same period last year; and a continued reduction in cash bill payments.

Love2shop division posted net revenue of £18.5m, driven by the positive performance in Park Christmas Savings, which has returned to growth for the first time in six years.