Smartpay (NZX:SPY) What did it reveal in the trading update?

Highlights

  • Smartpay the trading update after it concluded the Q2 2021 ended September this year of FY22.
  • Smartpay NZ topline marginally decreased due to the lockdowns and restrictions.

An electronic prepay solutions provider Smartpay Holdings Limited (NZX:SPY; ASX:SPY) notified the market with the trading update after it concluded the Q2 2021 ended September this year of FY22.

Smartpay’s trading update

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How did Smartpay perform in Australia?

The Australian acquiring transactional revenue demonstrated solid growth in September this year, standing at AU$2.15 million, rising by 9.75% on August.

COVID-19 induced restrictions and lockdown in Victoria and New South Wales affected the acquiring transactional revenue during September, where NSW and VIC were 21% low each than the normal trading levels.

In spite of the setbacks, freshly purchased transacting terminals in Q2 FY22, increased by around 1000 which reflected Smartpay’s value proposition.

The seven days that followed 11 October, around 500 idle terminals restored to transacting and also delivered a record revenue week for Australian acquiring business.

Related article; Smartpay Holdings (NZX:SPY) demonstrates revenue growth in Q3 FY21

The Company’s performance in NZ

Owing to lessened transactions from taxi fleets across lockdown period, Smartpay NZ topline marginally decreased to NZ$3.7 million from NZ$3.8 million on pcp.

However, monthly consumer churn rates in NZ were stable regardless of lockdown especially in Auckland.

On 21 October, at the time of writing, Smartpay was trading flat at NZ$0.89.

The road ahead

The Company is looking ahead to witness an improvement in Australian acquiring revenues as the states have started loosening the restrictions, which has led consumers returning to trading.  

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