Payzone posts H1 pre-tax loss

Source: Payzone

Payzone announces the Company's interim results for the six months ended 31 March 2009.

HIGHLIGHTS

The group has performed well in challenging and changing markets:

Financial

  • Pro forma EBITDA up 8% to €20.3m1
  • Revenues for the period were €583m2
  • Losses before tax for the period of €7m3
  • Goodwill impairment charges of €77m
  • Cash balances of €30.3m at 31 March 2009
  • Payzone has instigated discussions with its finance providers to establish a more appropriate long-term capital structure

Operational

  • Disposal of French, Italian and Spanish businesses for gross consideration of €20m
  • Profitability of UK ATM business increased three-fold following various operational improvements
  • Operating costs of Payzone UK business reduced by 26%
  • Group central costs reduced by 23%
  • Transaction volumes in Romanian and Greece increased by 7% and 21% respectively
  • Disposal of Open Loop Gift business
  • Network of electronic point-of-sale terminals and ATMs now numbers 136,300

Mike Maloney, Payzone's chief executive, said: 'Payzone has responded to a weak economy by vigorously restructuring its businesses. By taking out cost and eliminating losses, the group has been able to improve pro forma EBITDA, adjusted for disposals, currency and certain special items, by 8% to €20.3m. This is a significant achievement when transaction volumes have been affected by poor consumer sentiment.

'Payzone will need to continue to respond quickly and aggressively to the operating challenges presented by the macroeconomic environment. The immediate goal is for the company to establish a more appropriate capital structure, and we look forward to achieving a satisfactory outcome from the current discussions with our banks and other finance providers.'

1. The pro forma figures compare the results for Payzone's continuing operations in the six months to 31 March 2009 and in the six months to 31 March 2008. The merger that created Payzone was completed in December 2007. This comparison also excludes the effects of currency translation and certain special items

2. Excluding discontinued operations in Spain, France and Italy

3. Before impairment charges of €77m and intangible amortisation costs of €7m

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