Payzone reports 5% drop in sales to €155m for 2016

Payments firm Payzone has reported sales of €155.1 million for the 12-month period to the end of September last year, down 5 per cent from €162.9 million in the previous financial year.

Accounts recently filed with the Companies Registration Office show the business generated an operating profit of €5.8 million, up from €5.3 million for the 12-month period.

The company, which was acquired by private equity fund Carlyle Cardinal for €43.3 million in 2015, has one of the largest retail payments networks in Ireland, processing more than 90 million transactions annually across a variety of electronic transactions services, including mobile phone top-ups, debit/credit card transactions, M50 motorway toll payments, Leap travel cards, parking fees, pre-paid utility and parcel collection services.

Its recent acquisition of the EasyPaymentsPlus and MyEasyPay platforms has deepened the company’s penetration of the online transactions market.

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Online transactions now account for 12 per cent of total Payzone transactions, the company said, noting it was one of the fastest growing sectors of the business in 2016.

Diversification

The business, which employs more than 70 people at its Sandyford head office in Dublin, has also benefited from the public’s increasing appetite for contactless payment transactions, which continues to drive growth for debit card usage as an alternative to cash.

Chief executive Jim Deignan said the 2016 financial results reflected the ongoing diversification of the company's revenue base.

“During 2016, as expected, the reduction in mobile top-up sales continued, affecting gross turnover figures. However, the business performance, in terms of operating profit, was strong as we diversified further into customised payments solutions.

“Our deep knowledge of the e-payments industry, together with our technical expertise, means we are well placed to adapt quickly to developments in the marketplace,” Mr Deignan said.

New partnership

The company also provides customised payment solutions for a growing list of clients, including government agencies, local authorities, utility companies and mobile network operators.

Microsoft Ireland and Payzone entered a new partnership this year which entails launching Xbox digital products and Office 365 subscriptions in Payzone agents.

“We will continue to look for further growth opportunities following the successful acquisition of EasyPaymentsPlus and MyEasyPay payment platform businesses,” Mr Deignan said.

“Our objective is to drive greater efficiency for clients and increased revenues for our retail partners through the delivery of innovative e-payment services, with a renewed focus on consumer payment solutions.”