- EFTPOS provider Smartpay (SMP) has updated the market on its Australian and New Zealand businesses
- In late April, the company announced a 40 per cent decline in its total transactional revenues
- However, Smartpay says it has seen a steady recovery over the past four weeks in merchant transactions
- In a full-year result update, the company has also reported a 34 per cent increase in revenue to NZ$28.3 million (roughly A$26 million) for the 12 months to the end of March
- Smartpay says it will release its comprehensive full-year results in the first few weeks of June
- Smartpay is down 2.33 per cent on the market today, selling shares for 42 cents per share
EFTPOS provider Smartpay (SMP) has updated the market on its Australian and New Zealand businesses.
In late April, the company announced a 40 per cent decline in the total transactional revenues through its terminals due to the measures implemented by federal, state and territory governments in response to COVID-19 pandemic.
The company said it has seen a steady recovery in merchant transactions over the past four weeks. Its transactional revenue has recovered to 75 per cent of pre-COVID levels.
"With the easing of restrictions just having occurred on Friday last week (4 days ago) and with further easing flagged for some of our key merchant categories, we anticipate further improvement towards pre-COVID levels over the coming days and weeks," the company said.
The company's New Zealand business is struggling during this pandemic, however, the company says it has shown itself to be extremely resilient. New Zealand's lockdown restrictions were also eased late last week.
Earlier this month, Smartpay lost its deal with Verifone. Verifone has dropped out of purchasing the New Zealand Business, because conditions set out in the sales contract were not met by the agreement date, April 30.
Both parties were waiting on clearance for the deal from the New Zealand Commerce Commission, which Smartpay said had been pushed back until May 15.
Verifone has proposed revised terms to complete the deal, however, Smartpay declined the deal.
In late April, the company reduced its cost base in order to offset, what at the time, was large pending revenue impacts. Smartpay also applied for government support in each country.
"We are pleased to report that these combined measures have allowed the business to come through this period substantially unaffected at a cash level," the company said.
In a full-year result update, the company has also reported a 34 per cent increase in revenue to NZ$28.3 million (roughly A$26 million) for the 12 months to the end of March.
Smartpay says it will release its comprehensive full-year results in the first few weeks of June.
"With both the Australian and NZ economies opening up again, we believe we are well placed to resume and accelerate our growth in new terminal numbers this year," the company told the market.
"We expect to benefit from positive tailwinds as the effects of COVID further entrench cashless and contactless payments and through the strength of our superior product and commercial offering to what we expect will be increasing in value and cost-sensitive merchants," it added.
Smartpay is down 2.33 per cent on the market today, selling shares for 42 cents per share at 1:42 pm AEST.