Fewer in-store mobile phone top-ups have hurt Payzone's sales
But the payments processor reported an operating profit of just under €5.8 million last year.
PROFITS WERE UP but sales were down last year at payments processor Payzone as fewer shops used its services to process mobile phone top-ups.
Recently filed accounts show that the Sandyford-based firm reported an operating profit of just under €5.8 million for the financial year ended 30 September 2016, up from €5.2 million for the previous 12-month period.
However sales dipped by €7 million to €155 million last year, which Payzone chief executive Jim Deignan attributed to the ongoing decline of in-store mobile top-ups.
“However, the business performance, in terms of operating profit, was strong as we diversified further into customised payments solutions,” he said.
As well as processing mobile top-up sales for retailers, Payzone processes other electronic transactions like debit and credit card payments, M50 motorway tolls, Leap card top-ups, parking fees and pre-paid utility bills.
It also distributes payments services and products on behalf of a number of clients including government agencies, utility companies and mobile network operators.
Payzone CEO Jim Deignan
Acquisitions
In June, Payzone acquired online payments firms EasyPaymentsPlus and MyEasyPayl from Irish-owned from FeePay Ltd for an undisclosed sum.
“As consumers conduct more transactions electronically we have seen an increase in online transactions,” Deignan said, noting that 12% of all Payzone transactions are generated online.
“This was one of the fastest growing sectors of the business during 2016,” he said.
Deigned added that the payments outfit will “continue to look for further growth and opportunities” following the EasyPaymentsPlus and MyEasyPay acquisitions.
Payzone is owned by private equity fund Carlyle Cardinal Ireland, which was co-founded by the Carlyle Group and Cardinal Capital Group.
The Sandyford company employed an average 76 people last year across engineering, tech development and admin roles. There were paid and average of €52,500 in wages and salaries.
