Paymark lifts profit by 17% through cost control, rising sales
BUSINESSDESK: Paymark, the electronic payments company owned by New Zealand’s four biggest banks, lifted full-year profit by 17% as revenue rose and it kept costs under control.
Profit rose to $9.6 million in the 12 months ended March 31, from $8.27 million a year earlier, financial statements filed with the Companies Office show. Revenue was up 2.4% to $44.9 million.
Expenses fell 2.3% to $31.4 million even as employee benefits, the biggest cost item, gained 9.2% to $13 million. Communication expenses declined about 22% to $6.4 million.
Paymark, which is equally owned by ASB Bank, ANZ National Bank, Westpac Banking Corp and Bank of New Zealand, processes 75% of New Zealand’s electronic transactions via 115,000 terminals through 74,000 merchants.
A Paymark spokesman was not immediately available to comment on the results. Last month, the company said transactions through its networks rose 0.8% to $3.7 billion in July from a year earlier.
The company declared a dividend of $5 million on June 7, subsequent to the period covered by the accounts.