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 fit woman in workout gear flexes her muscles with two bigger people flexing behind her, indicating growth.
Best Shares

Top ASX shares to buy with $500 in November 2024

$500 worth of ASX shares might not sound like a huge investment. But, to realise the benefits of compounding, you…

Read more »

A diverse group of people form a circle at a park and raise their arms together.
Share Market News

Here are the top 10 ASX 200 shares today

ASX investors ended the trading week on a high note this Friday...

Read more »

Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
Share Gainers

Why Catapult, De Grey Mining, Domino's, and Nufarm shares are charging higher

These shares are ending the week strongly. But why?

Read more »

A young woman holds an open book over her head with a round mouthed expression as if to say oops as she looks at her computer screen in a home office setting with a plant on the desk and shelves of books in the background.
Healthcare Shares

This ASX All Ords share is diving 18% as inflation pain draws blood

This healthcare company delivered a trading update at its annual general meeting today.

Read more »

Three analysts look at tech options on a wall screen
Technology Shares

Up 70%, is it too late to invest in Xero shares?

This ASX tech darling hit a new all-time share price record yesterday.

Read more »

A woman with a sad face looks to be receiving bad news on her phone as she holds it in her hands and looks down at it.
Share Fallers

Why Healius, Opthea, Peninsula Energy, and Wildcat shares are falling today

These shares are having a tough finish to the week. But why?

Read more »

A young male investor wearing a white business shirt screams in frustration with his hands grasping his hair after ASX 200 shares fell rapidly today and appear to be heading into a stock market crash
Share Market News

Why this ASX uranium share is plunging 25% on Friday

Let's see why investors are smashing the sell button today.

Read more »