Paypoint Plc · LSE:PAY
Paypoint — H1 2012 Earnings Presentation
19 slides from Paypoint's earnings presentation, Nov 29, 2012
Slide 1: PayPoint plc Half year results presentation
PayPoint plc Half year results presentation 29 November 2012
Slide 2: Agenda
Agenda • Results summary • Strategy and execution • Financial review • Operational review • Summary 2
Slide 3: Results summary
Results summary Period ended September2 Net revenue £m • Good results with progress in all parts of the business in line with our strategy • Record transaction volumes of 345m up 18%, and operating profit up 13% to £18.9m 38.7 41.9 49.3 • Retail network transactions have increased 17% 2009 2010 2011
Slide 4: Strategy and execution
Strategy and execution 4 4
Slide 5: The 'essence' of what we do
The ‘essence’ of what we do • We process high volume consumer transactions, whether for multi-channel payments or retail services (e.g. parcels) for clients in vertical markets, through an integrated flexible platform • Payments are typically low value and cover retail, internet and mobile, with mon
Slide 6: Execution of strategy
Execution of strategy • Our businesses have shown good growth, leveraging their assets and driving new revenue streams • Roll out of the Simple Payment service (SPS) for the Department for Work and Pensions has begun, enhancing our existing cash out capability. Successful implementation of SPS is ma
Slide 7: Financial review
Financial review 7 7
Slide 8: Strong business momentum
Strong business momentum Period ended September 2010 2011 2012 49.3 £m £m £m £m 41.9 Net revenue 1 38.7 41.9 49.3 38.7 Other cost of sales (4.0) (4.3) (5.5) Administrative expenses (17.5) (19.3) (23.1) Operating profit 15.3 16.7 18.9 18.9 16.7 15.3 Share of Collect+ JV (0.7) (0.9) (0.7) Profit befor
Slide 9: PayByPhone net revenue bridge
£000 40,000 42,000 44,000 46,000 48,000 50,000 2011 Bill and general Mobile top-ups Net revenue bridge Top-ups Other top-ups Retail Services Internet PayByPhone Other 2012 Period ended September 9
Slide 10: Cash generation and use
Cash generation and use Period ended September 2010 2011 2012 £m £m £m Operating cash flows 17.8 18.9 21.4 Working capital (2.4) (5.5) (2.8) Cash generated by operations 15.4 13.4 18.6 Tax paid (5.9) (5.3) (5.2) Net cash inflow from operating activities 9.4 8.1 13.4 Net cash used in investing activi
Slide 11: Key messages
Key messages • Net revenue and profit growth • Excellent cash conversion • Ongoing investment to secure future growth • Balance sheet strong 11
Slide 12: Operational review
Operational review 12 12
Slide 13: Retail (UK, Ireland & Romania)
Retail (UK, Ireland & Romania) Period ended September Group net revenue • Strongly differentiated over the counter payment proposition • The network: – Over 31,000 convenience stores open early till late – In the UK, a good mix of major chains, buying groups and independents with low churn (c. 3% pa
Slide 14: Retail
Retail Period ended September Group retail net revenue bridge £000 UK & Ireland • Bill and general payment revenues continue 25 showing growth, enhanced by SPS 1,965 775 • Consumers starting to be migrated to the DWP’s Simple Payment service 42,484 3,922 • Increase in top-up transactions driven by H
Slide 15: Collect+
Collect+ • Transforming home shopping fulfilment for consumers Period ended September • Joint venture with Yodel to service fast growing e-commerce / mail order (B2C) opportunities Collect+ at 100% 2011 2012 • Collect+ provides B2C and C2C parcel services Transactions (m) 1.4 3.3 through PayPoint re
Slide 16: e&m commerce
e&m commerce Period ended September Group net revenue • Core to group strategy to provide clients with multi-channel 14% payment capability • Accesses fast growing markets and acts as a bridge for the eventual migration of cash to electronic payments e&m commerce 2011 2012 Our Internet payment busin
Slide 17: e&m commerce
e&m commerce Period ended September Our mobile payment business (PayByPhone) PayByPhone net revenue by geography 2011 2012 • Leader in mobile payments in UK, France, USA and Canada Other • Fast growing; registered users up by 24% to 5.1m Other 2% 2% North North America America UK • Continued develop
Slide 18: Summary and outlook
Summary and outlook 18
Slide 19: Summary and outlook
Summary and outlook We will continue to execute on our strategy: • Leverage and grow our retail business – further revenue growth in UK and Romania – further enhance retail yield through the continued development of our retail services proposition – further growth of the Romanian retail network • Co