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Investing.com -- PayPoint Plc (LSE:PAY) shares climbed 2% following the announcement of its financial results for the third quarter. The company reported a 2% organic growth in net revenue year-on-year (YoY) to £53 million, although this marked a deceleration from the previous quarter’s growth rate.
The British payment systems provider experienced mixed results across its various segments. The Shopping division saw revenues decrease by 2% to £16 million, which the company attributed to reduced consumer spending on cards amidst a challenging environment for UK consumers.
Conversely, the L2S segment added £19 million in net revenue, a modest 1% increase YoY, with billings surpassing last year’s peak and an encouraging pipeline set for the fourth quarter of fiscal year 2025. The e-Commerce sector showed significant strength, growing 31% to £4 million, buoyed by a 37% increase in Collect+ transaction volumes and a fruitful partnership with Royal Mail (LON:IDSI).
Despite not providing specific guidance for FY25, PayPoint expressed confidence in meeting market expectations, which forecast a 5% increase in revenue to £190 million, with a potential fourth-quarter growth of approximately 7% to reach £52 million.
Analysts project an EBITDA of £89 million for FY25, equating to a 47% margin, with expectations for FY26 at £95 million, aligning with PayPoint’s own ambition of reaching £100 million.
The company’s performance and outlook appear to reassure investors, as the share price responded positively to the earnings report.
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