PayPoint (PAY) H1 2025 earnings summary

Executive summary

• Underlying EBITDA rose 20.6% to £37.5m, with underlying PBT up 23.4% to £26.9m and reported PBT up 34.3% to £23.1m, reflecting strong H1 performance and confidence in meeting full-year expectations.

• Revenue increased 6.7% year-over-year to £135.0m, with net revenue up 6% to £84.6m, driven by e-commerce, Love2shop, and strategic investments in Yodel and obconnect.

• Strategic investments in Yodel and obconnect are expanding growth in parcels and Open Banking, with further momentum in card processing, retailer services, and Love2shop.

• Disciplined capital allocation underpins a three-year share buyback programme and continued dividend growth.

• Progress made on key growth areas, including network expansion, digital payments, and enterprise solutions.

Financial highlights

• Net revenue up 6% to £84.6m; total revenue up 6.7% to £135.0m.

• Underlying EBITDA increased 20.6% to £37.5m; underlying PBT up 23.4% to £26.9m.

• Diluted underlying EPS up 24% to 27.4p; diluted EPS up 35.1% to 23.5p.

• Interim dividend increased by 2.1% to 19.4p per share.

• Net corporate debt at £86.8m, reflecting investments and share buybacks.

Outlook and guidance

• Confident in delivering £100m EBITDA by FY26, supported by progress in key growth areas.

• Expect further revenue growth in H2 and to meet current year expectations despite UK economic challenges.

• Share buyback programme to return at least £20m over next 12 months, with potential to increase in subsequent years.

• Continued investment in business, share buyback, and dividend growth planned.

• Leverage ratio targeted at ~1.0x net debt/EBITDA.