E-commerce payments business Payzone Ireland’s operating profits rose to €5.3m last year despite a drop-off in sales. Its operating profit, before exceptional items, surpassed the €3.2m figure the previous year.
Turnover fell €800,000 to €162.8m in 2015 — a trend the company’s directors expect to continue in the coming years as the company “diversifies further into customised payment solutions”.
Payzone Ireland’s cost of sales fell from €161.9m to €152m. Payzone Ireland Limited chief executive Jim Deignan said the firm’s financial results illustrate the change in its revenue mix and business strategy.
“2015 was a good year for Payzone as we continued to rebalance our portfolio of products and services to reflect marketplace changes,” said Mr Deignan.
“Through ongoing technology developments we have successfully diversified into a wider range of customised payment solutions, financial services and channels which have improved our overall business performance.”
Payzone Ireland owns a physical retail payments network comprised of 11,500 points of sale across 7,000 agents.
It processes transactions across a variety of electronic transactions services, including financial services, mobile phone top-ups, debit/credit card transactions; M50 motorway toll payments; Leap travel cards, local property tax payments, parking fees, pre-paid utility and parcel collections.
In 2015 financial services accounted for 30% of transactions; transport-related transactions 24%; utility payments 25% and mobile top-ups 21%.
The company’s directors identify a potential downturn in the pre-paid mobile top-up market as the most prominent risk to its business but add management have a long track record in managing that risk.
Payzone Ireland was acquired by private equity fund Carlyle Cardinal Ireland in April 2015.
The company incurred acquisition-related costs of €495,000 as a result of the acquisition. Exceptional items arising the previous year, 2014, had boosted the company’s coffers by €4.5m as a result of a bad debt write back.
Payzone Ireland employs more than 70 people at its head office in Sandyford, Co Dublin.
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