Paypoint Plc · LSE:PAY
Paypoint — H1 2012 Earnings Presentation
39 slides from Paypoint's earnings presentation, Nov 24, 2011
Slide 1: PayPoint plc Half year results presentation
PayPoint plc Half year results presentation 24 November 2011 Strictly private and confidential
Slide 2: Results summary
Results summary 6 months ended September 2011 Net revenue £m • A strong set of operational and financial results with good progress in all parts of the business • Record transaction volumes of 292m up 9%, and operating profits also up 9% to £16.7m 35.6 36 38.7 41.9 • A good performance in our establ
Slide 3: Net revenue bridge
Net revenue bridge 6 months ended September 2011 Established business Developing business £000 Operating profit £17.8m (2010 £16.2m) Operating loss including Collect+ £2.0m (2010 £1.5m) 43,000 42,000 41,000 40,000 39,000 38,000 37,000 36,000 35,000 PayByPhone 2011 2012 Internet services Bill and Bil
Slide 4: Clear strategy, with four key elements
Clear strategy, with four key elements Full Selected Value added Geographic payments vertical services / reach capability markets content Multiple payment High volume Differentiation to Ability to import know media channel through how and replicate recurring payments UK strategy products & services
Slide 5: UK & I retail network
UK & I retail network 6 months ended September 2011 Group net revenue • Market leading ‘over the counter’ payments proposition • Established retail network handling household bill 82% payments, mobile phone top-ups and retail services – 24,000 outlets – Over 99% of UK population (coverage within 201
Slide 6: UK & I retail network
UK & I retail network 6 months ended September 2011 UK net revenue bridge £000 36,000 Current dynamics • Relatively mature payments revenues still showing growth 34,000 – Energy prepayment 32,000 – Local authority and housing associations • Decline in mobile top-up transactions more than 30,000 Bill
Slide 7: Internet
Internet 6 months ended September 2011 Group net revenue • Well positioned, in a fast growing market 10% • Provides secure credit card, debit card and other payments for web merchants • High transaction growth post acquisition • Unique bureau and gateway proposition 2010 2011 for merchants Transacti
Slide 8: Internet
Internet Current dynamics • Strong transaction growth (up 34%) • Net revenue growth (4%) restricted in H1 because we temporarily ceased processing for one large merchant which was changing its 6 months ended September 2011 business model. We have re-started processing for this merchant since the per
Slide 9: Romanian retail network
Romanian retail network 6 months ended September 2011 Group net revenue 4% • Recreating UK retail success in strong cash based economy (22m population) • Retail network handling household bill payments and mobile phone top-ups – 6,383 terminals and growing – Bill payment growing strongly (69%) – Maj
Slide 10: Romanian retail network
Romanian retail network 6 months ended September 2011 Transaction volume (000) Current dynamics 10,000 • Business now profitable 7,500 • Strong growth in bill payment volume • Small growth in mobile top-up volume as we 5,000 extend our retail network 2,500 • Launched first retail service (money tran
Slide 11: PayByPhone
PayByPhone 6 months ended September 2011 Group net revenue 4% • Leader in mobile phone payments for parking in the UK, France and North America • Mobile payment capability is central to PayPoint’s payment hub strategy • Drives increased revenue at lower cost for parking operators – Westminster estim
Slide 12: PayByPhone
PayByPhone 6 months ended September 2011 Current dynamics Transaction volume 000 • Increase in development – Apps launched on iPhone, BlackBerry and 9,000 Android UK and France North America 7,500 – Electric car rental and charging pilot 6,000 – Bridge toll payment win in Vancouver 4,500 – NFC* depl
Slide 13: Collect+
Collect+ 6 months ended September 2011 • Ground breaking solution for home shopping parcel fulfilment for consumers Collect+ at 100% 2010 2011 Transactions (m) 0.3 1.4 • Joint venture with Yodel to service fast growing Collect+ net revenue (£m) 0.4 2.3 e-commerce / mail order (B2C) opportunities • C
Slide 14: Collect+
Collect+ Parcels/week Current Dynamics • Returns now an established offer for online retailers; used by majority of fashion retailers 120,000 • Deliveries now proven and are key to growth for 2012, as a ‘Click & Collect+’ proposition for retailers • 44 new merchants signed up in the period, includin
Slide 15: Outlook
Outlook • Trading in line with expectations • Established business – Better yield in UK retail from retail services, energy prepayment and cash out – Growing internet payments through new and existing merchants and new transaction management and reporting product to be delivered in H2 • Developing b
Slide 16: Summary
Summary • Results demonstrate a robust business model • All businesses progressing well • Achieving growth in both the established and the developing businesses • Strong financial position with good cash conversion • Increased dividend • Confidence in driving future growth 16
Slide 17: Appendices
Appendices 1. Financial review 2. PayPoint management team 3. Materials to support the consumer transaction 17
Slide 18: Financial review
Appendix 1 Financial review 18
Slide 19: Established & developing business streams
Appendix 1 Established & developing business streams 6 months Established Developing Total Adjust As reported ended business business Collect+ September Transactions (000) 2011 272,880 19,125 292,005 - 292,005 2010 253,451 13,973 267,424 - 267,424 Transaction value £000 2011 5,394,898 193,416 5,588,
Slide 20: Revenue and net revenue bridge
Appendix 1 Increase in bill and general Revenue and net revenue bridge Increase in transactions in UK prepaid energy/ local authority housing Increase in bill payment transaction volume in Romania Decrease in top-ups 6 months ended Revenue Net revenue September Continuing decline driven by operators
Slide 21: Revenue to net revenue
Appendix 1 Agent commission £000 Revenue to net revenue 2010 34,579 2011 2010 Favourable/ Bill and general 1,319 6 months ended September £000 £000 (adverse) Top-ups (3,432) Revenue 95,923 92,898 3.3% Retail services 654 Agent commission (33,120) (34,579) 2011 33,120 Mobile top-ups and SIM cards (20
Slide 22: Costs
Appendix 1 Costs UK terminal estate and ATMs 2011 2010 Favourable / becoming fully depreciated 6 months ended September £000 £000 (adverse) Net revenue 41,930 38,728 8.3% Depreciation/ amortisation (1,652) (1,912) 13.4% Other cost of sales (4,268) (3,997) (6.6%) Operating costs (19,316) (17,510) (10
Slide 23: Profit
Appendix 1 Profit 6 months ended September 2011 2010 Favourable/ £000 £000 (adverse) Operating profit 16,694 15,309 9.0% Share of loss on JV (935) (726) (32.6)% Interest 64 (26) Profit before tax 15,823 14,557 8.5% Tax (4,510) (4,496) Profit after tax 11,313 10,061 8.6% Equivalent tax rate reduced f
Slide 24: Cash flow
Non cash items £000 Appendix 1 Depreciation 1,494 Cash flow Loss on joint venture 935 Share based payments 540 2011 2010 6 months ended September Amortisation 158 £000 £000 Other (64) Profit before tax 15,823 14,557 Capital expenditure £000 Add back non cash items 3,063 3,257 Changes in working capi
Slide 25: PayPoint management team
Appendix 2 PayPoint management team 25
Slide 26: Management team
Appendix 2 Management team • David Newlands (Non Executive Chairman) formerly Finance Director of GEC, Deputy Chairman of Standard Life, Chairman of Tomkins and currently Chairman of KESA • Dominic Taylor (Chief Executive) formerly Vodafone, Granada • George Earle (Finance Director) formerly Centric
Slide 27: Materials to support the consumer transaction
Appendix 3 Materials to support the consumer transaction 27
Slide 28: UK Retail: Client payment media
Appendix 3 UK Retail: Client payment media 28
Slide 29: UK Retail: Retailer external signage
Appendix 3 UK Retail: Retailer external signage 29
Slide 30: UK Retail: PPOS merchandising
Appendix 3 UK Retail: PPOS merchandising 30
Slide 31: UK Retail: PPOS virtual terminal
Appendix 3 UK Retail: PPOS virtual terminal 31
Slide 32: UK Retail: Terminals and ATMs
Appendix 3 UK Retail: Terminals and ATMs 32
Slide 33: UK Retail: Terminal / PPOS receipts
Appendix 3 UK Retail: Terminal / PPOS receipts E-TopUp Sample SPAR Tag E Voucher Utility Payment Transport Ticketing 33
Slide 34: PayByPhone: Parking payment: IVR, SMS, mobile web
Appendix 3 PayByPhone: Parking payment: IVR, SMS, mobile web PAGE 34 PAGE 34 34
Slide 35: www.collectplus.co.uk – Parcel delivery
Appendix 3 www.collectplus.co.uk – Parcel delivery 35
Slide 36: www.collectplus.co.uk – Parcel returns
Appendix 3 www.collectplus.co.uk – Parcel returns 36
Slide 37: Collect+: UK Network 4,500 locations live
Appendix 3 Collect+: UK Network 4,500 locations live 37
Slide 38: PayCash – merchant's website
Appendix 3 PayCash – merchant’s website 38
Slide 39: PayCash – consumer voucher
Appendix 3 PayCash – consumer voucher 39