- 292 million transactions processed in the period, up 9%
- UK & Ireland transactions increased 5% with net revenue up 9%
- Internet payment transactions have grown by 34% and net revenue by 4%
- Romanian retail network moved into profit bill payment transactions increased to over 8 million
in the period (2010: 5 million)
- PayByPhone increased transactions to over 8 million, up 23% with net revenue up by 18%
- Collect+ has processed over 1 million transactions, an increase of nearly five times
and has won two national awards for its innovative parcel delivery and returns service
- Earnings per share increase helped by lower UK tax charge
- 8.7p dividend per share, up 12%

David Newlands, Chairman of PayPoint plc said:
“Our retail network continues to perform well, processing 5% more transactions overall in the period, despite there being 5 million fewer mobile top-ups. Internet payments contributed to overall growth in transactions of 8% in the established business (the UK and Ireland retail networks and internet payments). Net revenue in the established business increased by 7%.

Our developing business, consisting of our Romanian retail network, Collect+ parcel service and PayByPhone, also made good progress. In Romania, we made a small profit following 69% growth in bill payments and since the period end, we have introduced Western Union money transfer. Collect+, our award-winning parcels joint venture, has won 44 new merchants and processed nearly five times as many parcels as in the same period last year. PayByPhone has been selected by 33 new clients in the period, with a substantial number of tender decisions still awaited.

For the current financial year, trading is in line with the company’s expectations. Our established business is strong. We will pursue further opportunities to enhance our retail yield by introducing new technology and services, while enhanced transaction management and information services should help our internet sales in the next financial year. Continuing progress is expected in our developing business. Our Romanian retail network will focus on improving market share and further modest network growth to improve yield. PayByPhone will continue to pursue new clients and enhance its technology to grow revenue and improve customer satisfaction. Collect+ will continue its intensive marketing to new clients, to extend deliveries to its existing returns clients and to promote its consumer-to-consumer proposition. We expect PayByPhone and the Collect+ parcel service to turn to profit in the next financial year.

I am pleased to announce an interim dividend of 8.7pence per share.”

The condensed financial statements cover the six months from 28 March 2011 to 25 September 2011, the last Sunday in the month (2010: 6 months covering the period 29 March 2010 to 26 September 2010).

^{1 Net revenue is revenue less the cost of mobile top-ups and SIM cards where PayPoint is principal and costs incurred by PayPoint, which are recharged to clients and merchants. These costs include retail agent commission, merchant service charges levied by card scheme sponsors and costs for the provision of call centres for PayByPhone clients. Net revenue is a measure, which the directors believe assists with a better understanding of the underlying performance of the group.}

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