Smartpay (ASX:SMP) share price rises on business update

Smartpay provided a trading update for the period ending 31 August. The Smartpay share price has risen 3.3% on the announcement.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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. 

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

A woman's hand draws a stylised 'Top Ten' on a projected surface.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a rough Friday session to end the week for investors.

Read more »

A young man looks like he his thinking holding his hand to his chin and gazing off to the side amid a backdrop of hand drawn lightbulbs that are lit up on a chalkboard.
Broker Notes

Brokers name 3 ASX shares to buy right now

Let's find out which shares top brokers are feeling bullish about this week.

Read more »

A smiling pink piggy bank graduates after years of growth.
Share Market News

Wilson Asset Management says CGT tax changes will 'redirect' investment toward yield

Fundie says income-producing assets are set to become 'comparatively more attractive'.

Read more »

A bored man sits at his desk, flat after seeing the latest news on the share market.
Share Fallers

Why Aeris, Newmont, PLS, and REA Group shares are tumbling today

These shares are ending the week in the red. But why?

Read more »

Man raising both his arms in the air with a piggy bank on his lap, symbolising a record high.
Share Gainers

Why A2 Milk, EOS, IDP Education, and SkyCity shares are charging higher today

These shares are ending the week in a positive session despite the market decline.

Read more »

Medical workers examine an x-ray or scan in a hospital laboratory.
Healthcare Shares

Why this red-hot ASX healthcare share keeps climbing

A 1,600% gain hasn't slowed this stock down.

Read more »

Close up portrait of happy businesswoman standing in front or leading her multi-ethnic corporate team.
Broker Notes

Morgans recommends these ASX shares as buys

Broker buy calls are not guarantees, but these three Morgans recommendations are worth a closer look.

Read more »

Man with a hand on his head looks at a red stock market chart showing a falling share price.
Share Market News

Why is the ASX 200 sinking to a 5 day low today?

The ASX 200 is under pressure as heavyweights fall.

Read more »