Smartpay Achieves Record Full Year Profit

25 May 2017

Smartpay Achieves Record Full Year Profit

Profitable fintech sees strong increase in post-tax profit, and forecasts further growth

Sydney and Auckland, 25 May 2017: ASX / NZX fintech payments company, Smartpay (ASX: SMP; NZX: SPY), today announced its full year financial results, including a record Net Profit After Tax of $2.2m. The record profit follows a year of revenue growth in their Australian business, as well as the introduction of a new technology platform.

Full Year Financial Highlights:

  • Total Revenue and Other Income $21.8m; an increase on the prior year $20.4m,
  • EBITDA $9.6m; an increase on the prior year $8.1m,
  • Net Profit After Tax $2.2m; an increase on the prior year $0.2m,
  • Diluted Earnings Per Share (EPS) of 1.29 cents; an increase on the prior year 0.13 cents.

Commenting on the financial results, Smartpay CEO Bradley Gerdis said, “Beyond a milestone financial result, the work we have done during the year has set a strong foundation for the business”.

“We have invested heavily in our New Zealand business to provide the latest payment terminal technology, as well as to ensure continued compliance with evolving payments standards. In particular, our terminal upgrade and remote fleet management capability will help reduce operational and maintenance costs to manage the network in future years.”

“Feedback from our customers suggests that our new terminals offer the fastest transaction times in market, a key metric and user experience for retailers.”

“In Australia, revenue growth of 37% reflects our success in expanding our retail terminal network, alongside a sale of terminals to an Australian bank. The terminal sale is a pleasing outcome as it validates our terminal technology against competing products in the Australian market and opens what we expect will be a valuable growth channel for our business.”

“Looking forward, we expect SmartConnect – our new cloud-based payments platform – will unlock even greater opportunity. Allowing the integration of any payment initiation device with any payment termination device or application, SmartConnect opens the door to mobile wallets, ecommerce gateways, as well as real-time payments data and analytics; valuable assets to retailers and banks alike.

“The development of this new technology demonstrates Smartpay’s ability to stay at the forefront of payments innovation which together with the planned implementation of our Australian acquiring capability later this year provides for a positive growth outlook”, said Mr Gerdis.