Payzone profits hit €6m despite slide in sales
Profits at electronic payments business Payzone have risen to €6.3m in the 12 months to September 30 last year - an increase of 8.6pc on the profits of €5.8m recorded in 2016.
The increase in profits comes despite a fall in sales.
In the 12 months to September 30, Payzone reported sales of €149.2m, compared to €155.1m in the previous financial year, according to accounts to be filed with the Companies Registration Office (CRO).
Payzone CEO Jim Deignan said that the results continued to reflect the "evolving nature of the business" as it diversifies the company's revenue base towards more consumer-facing activities.
"Our core business continued to perform well in 2017, enabling us to invest in further development activities to support our ongoing strategy," Mr Deignan said.
"As consumers continue to conduct increasing levels of transactions electronically, Payzone is really well positioned to provide an effective portfolio of customised payment solutions that deliver real value."
In June last year, Payzone acquired the EasyPaymentsPlus and MyEasyPay payment platform businesses, with Mr Deignan saying that he was "particularly pleased" with their performance.
"[They] are now integrated into our business and gaining traction."
Founded in 1989, the company, which originally traded as Alphyra, handles over one billion transactions annually across a variety of electronic transactions services, including mobile phone top-ups, debit/credit card transactions, M50 motorway toll payments, Leap travel cards, parking fees, pre-paid utility and parcel collection services.
It owns one of the largest physical retail payments networks in Ireland with 11,500 points of sale across over 7,500 agents.
Payzone clients include Government agencies, local authorities, utility companies, and mobile network operators.
Announcing its results, the company said that the increase in contactless transactions is continuing to drive growth for debit card usage as an alternative to cash, with consumers become increasingly comfortable in using cards for payment of low-value transactions.
In April 2015, Payzone was acquired by private equity fund Carlyle Cardinal Ireland (CCI) for €39m.
Last month the 'Sunday Independent' reported that CCI has put Payzone on the market and is expected to fetch a price of between €90m and €110m.