PayPoint posts strong revenue growth in first half, but profits dip  

PayPoint has on Friday announced strong revenue growth across the group for the half year ended 30 September.

Group net revenue stood at £79.8 million, increasing by 34.1 per cent year on year. Net revenue from PayPoint segment has increased by £2.8m to £62.3m, a jump of 4.7 per cent.

Underlying EBITDA has seen an increase of 9.9 per cent to £31.1m.

However, underlying profit before tax (excluding adjusting items) decreased by 7.5 per cent to £21.8m, reflecting the continued investment in the business, increased financing costs, the expected H1 loss from the Love2shop business, and depreciation and amortisation from the core PayPoint business.

PayPoint has completed the acquisition of Love2shop brand owner Appreciate Group in February this year.

“Following the acquisition of Love2shop, the seasonal balance to profit and cash generation in our business has now changed, resulting in a more H2 weighted performance and contribution to the financial year as a whole,” Nick Wiles, chief executive of PayPoint Plc, said.

“It is testimony to the transformation of the business that we continue to deliver overall group net revenue growth in a period where energy sector net revenue has decreased by almost 20 per cent and against the background of uncertain consumer behaviour and weakening confidence due to the cost of living challenges,” he added.  

The group’s UK retail network increased to 28,646 sites (31 March 2023: 28,478), with 70 per cent in independent retailer partners and 30 per cent in multiple retail groups.

Net revenue of the shopping division has increased by 4.2 per cent to £32.1m, driven by the growth of PayPoint One estate, service fee revenue and further enhancements to the retailer and SME propositions.