Smartpay profit falls 9.5% as foray into Aussie cab market costs it major contract
Net profit fell to $1.6 million, or 0.91c per share, in the 12 months ended March 31.
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Smartpay Holdings [NZAX: PAY], the listed payment terminal supplier, reported a 9.5% drop in annual profit after its decision to sell directly to Australia's taxi industry cost it a major wholesale contract.
Net profit fell to $1.6 million, or 0.91c per share, in the 12 months ended March 31, from $1.7 million, or 1.01c, a year earlier, the Auckland-based company said in a statement. Sales slipped 3% to $22.2 million, while earnings before interest, tax, depreciation and amortisation declined 3% to $9.2 million after losing an Australian customer that made up about 8% of the firm's revenue.
"The primary contributor to the lower revenue and ebitda was the cessation of our largest Australian taxi contract revenue at the end of December 2014," the company said in a statement. "This was an anticipated outcome driven by Smartpay's decision to participate directly in the Australian taxi industry rather than through an indirect wholesale relationship."
The company widened its footprint this year by taking over Epay's 2500 terminals in New Zealand and rolled out a taxi booking and payment app across the Tasman.
Smartpay said, since the launch of its taxi business in Australia, it has secured contracts with a number of operators, deploying nearly 600 terminals.
The company is also eyeing the next generation of integrated payments terminals and the emergence of mobile payment systems in Australia, with a target release date for products across the Tasman in the third or fourth quarter of 2015.
Smartpay's shares dropped 4.8% to 20c, and have gained 5% this year.
(BusinessDesk)
Paul McBeth
Fri, 29 May 2015
Fri, 29 May 2015
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Smartpay profit falls 9.5% as foray into Aussie cab market costs it major contract
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