Smartpay (ASX:SMP) Reports Strong Interim Results for FY25
Financial Performance
Smartpay (ASX:SMP) has reported its interim results for the first half of FY25, showcasing an 8% increase in revenue to $50.8 million, up from $46.9 million in the previous year. Despite this growth, the company experienced a normalised EBITDA of $7.9 million, down 26% from $10.6 million in the prior period. The loss before taxation was $0.2 million compared to a profit of $4.8 million last year.
Operational Highlights
Australian acquiring transactional revenue was a key driver, growing to $41.5 million, representing a 9% increase over the previous year. Monthly acquiring revenue increased to $7.3 million as of September 2024. The transacting terminal fleet in Australia rose to over 20,000, up from 18,400 in March 2024.
Strategic Outlook
Martyn Pomeroy, Managing Director of Smartpay, highlighted the company’s commitment to growth in the Australian market, despite challenging economic conditions for customers. The introduction of a next-generation Android terminal and a nationwide branding campaign received positive feedback. The company also began investing in New Zealand, significantly expanding its terminal fleet by acquiring assets from a competitor.
Future Prospects
Smartpay is focused on sustainable growth, aiming to enhance its market presence in Australia while establishing a foothold in New Zealand. The company is dedicated to delivering a comprehensive in-store payment solution across its trans-Tasman customer base. Pomeroy affirmed the team’s commitment to their core values, ensuring alignment with customer and shareholder interests.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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