The Smartpay Holdings Ltd (ASX: SMP) share price has jumped 3.3% to 62 cents following a trading update announced earlier today. At one point, the Smartpay share price hit an intraday high of 63.5 cents after opening at 59 cents. This compares to the All Ordinaries Index (ASX: XAO) which is down 1% today at 6,080 points.
What does Smartpay do?
Smartpay is the largest independently owned and operated EFTPOS provider in both Australia and New Zealand. The company develops innovative point-of-sale (POS) systems for over 25,000 business customers including banks, retailers and merchants.
Business update
Smartpay provided a trading update for the period ending 31 August. The performance in its Australasian business segments are as follows:
Australia
The EFTPOS provider saw Australian lead generation and new customer acquisition at record levels. In Australia, revenue increased 19% for June to July, and 91% year on year. This result was achieved despite the Victorian lockdown in August that caused a 6% decline in July's incoming revenue.
The company warned that while 12% of its transacting terminal base was affected, including 5% by a single merchant category, customer growth has offset this.
Smartpay advised that transactions per terminal (as well as average transaction value) have been maintained above pre-COVID levels, standing at 4,432 with hopes of reaching 5,000 in the coming months.
New Zealand
The company noted that the most recent regional lockdown in Auckland had minimal impact on its trading and operational volumes. Furthermore, Smartpay highlighted its flexible remote working plans as a driver for its New Zealand business.
Outlook
Smartpay said that its recent results lead to a positive outlook, particularly as Victoria emerges from lockdown. This is reflected by strong customer acquisition and solid transaction numbers recorded in Australia.
The company also said it expected to see a boost in trading activity levels for the September quarter and will look towards continuing organic growth.
Smartpay share price summary
The Smartpay share price has been on a rollercoaster ride over the past year. From reaching a 52-week low of 16.5 cents and a 52-week high of 82.5 cents, the Smartpay share price is currently 16.98% up in year-to-date trading.
