PayPoint PLC (LON:PAY) expects to grow full-year profits after the roll out of its new retail payments platform boosted first quarter revenue.
Revenue in the quarter ended June 30 rose 3.6% to £28.7mln, led by an 30.7% increase in service fees to £3.1mln.
The PayPoint One platform, which can be used by retailers for a range of payments including point of purchase, bills, parcels and contactless cards, was the key driver of growth in service fees.
Since the start of the financial year the company has rolled out the technology to 752 more sites, taking the total to 13,633 sites at the end of June.
PayPoint said it is on track to reach its year-end target of 15,800 sites.
Card payment transactions rose 17.6% to 32.2mln in the first quarter. Card payment rebate revenue increased 10.1% volume growth mitigated lower average transaction values.
ATM net revenue fell 8.4% to £3mln due to a 10% reduction in the interchange fee by cash machine network LINK and a 3.0% reduction in transactions to 10.4 million.
PayPoint said it has secured a new “significant” ATM client and will begin rolling out 159 ATMs to its leisure centres in the second quarter
Underlying parcel net revenue increased by 15.2% as UK parcel volumes grew by 11.9% to 5.6mln, supported by demand from new partners.
UK bill payment net revenue grew by 7.5% as transactions gained 3.2% to 75mln on the back of a strong performance in its MultiPay payments technology.
“The board remains confident that there will be a progression in profit before tax and exceptional items for the year ending 31 March 2020,” said chief executive Patrick Headon.