PayPoint plc, the main cash and online payments operator in the UK, has announced that the Romanian business has continued to grow in the first half of financial year 2010-2011. In the six months ended 26 September 2010, the company installed over 1,800 new full service terminals and removed over 1,600 of the old mobile top-up only terminals; therefore, the branded retail network now numbers over 5,000 terminals located in local shops, processing cash bill payments for utilities and mobile phone top-ups. In the same time, the company has increased its number of clients by signing 4 new contracts for collecting payments.

In Romania, by installing terminals and completing signing up most of the major utilities for bill payment, transactions have grown significantly: in the first half of this financial year, there have been processed over five million bill payment transactions, an increase of nearly three times on the same period of the previous year. Together with cost reductions, all these strong results put PayPoint Romania on track to profitability.

The announcement was made as PayPoint plc issued its financial results for the six months period that ended September 26, 2010.

Mugur Dogariu, Managing Director, PayPoint Romania, said:

Since the launch of Bill Payment service in Romania, we have been focused on finding the most efficient way to relate three major key elements: our customers, our clients, our retailers. We wanted to provide as many consumers this quick, easy and very accessible payment method, to build an extensive portfolio of clients across a diverse range of service sectors and to optimise our national presence. PayPoint’s results for the first half of this financial year show that we have reached this objective, creating a solid foundation for our business. Of course, there is still substantial growth potential and we have everything we need in order to maintain the growing trend from now on!
The group reported total revenues of 92.9 million GBP, decreasing by 3.6 % compared to the same period of the previous year, especially as a result of fewer mobile top-up transactions. At the same time, the group reported operating profit of 15.3 million GBP, up 4.4 % on the six months ended September 27, 2010. The number of transactions processed in this period increased by 6% and the transaction value increased by 8.7%, reaching more than 4,800 million GBP.

"PayPoint has delivered another strong set of results with growth in net revenue, operating profit and profit before tax … These results demonstrate our ability to execute strategy, delivering improved yield in our established business streams and growth in our developing businesses ... In Romania, cost reduction and growth in bill payment has put us on track to profitability..” said David Newlands, Chairman PayPoint plc.

In Romania, the company officially launched its bill payment service under the PayPoint brand in August 2008 and expanded its client portfolio by signing partnerships with a range of companies in service sectors including utilities, financial - insurance, cable TV and mobile telecom.

Currently, PayPoint has signed contracts with 34 major customers in telecommunications, utilities and financial services, of which 27 are contracts for payment collection services. Current clients include: 

• Payments for utilities sector: GDF SUEZ Energy Romania, E. ON Gas Distribution, E. ON Gaz Romania, Petrom Gas Distribution, Congaz, E. ON Moldova Supply, Enel Energy, Enel Energy Wallachia, Electrica Transilvania Nord, Electrica Transilvania Sud, Electrica Muntenia Nord, Apa Nova Bucharest, ApaVital Iasi, Aquatim.

• The telecommunications sector and cable communication: Vodafone Romania, Cosmote Romania, Orange Romania, Romtelecom, UPC Romania, Zapp, Boom TV, Akta TV.

• Banking sector: Allianz-Tiriac, Citibank Romania, EOS KSI Romania, GE Money, Patria Credit.

PayPoint also offers top-up services for all mobile operators (Cosmote, Orange, Vodafone, Zapp), for landline operators providing international calls and Internet Service Providers. PayPoint clients include Nobel and Worldtelecom (Number One). For Focus Sat, PayPoint provides recharge vouchers for DTH service users.

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ABOUT PAYPOINT

PayPoint is a leading international provider of convenient payments and value added services to major consumer service organisations in the energy pre and post-payment, housing, water, telecoms, media, financial services, transport, retail, e-commerce, gaming and public sectors.

PayPoint deliver payments and services through a uniquely strong combination of local shops, internet and mobile distribution channels and handles over £10 billion from almost 570 million transactions annually for more than 6,000 clients and merchants. 

Retail networks

The PayPoint branded retail network in the UK numbers over 22,000 terminals located in local shops (including Co-op, Spar, McColls, Costcutter, Sainsbury’s Local, One Stop, Londis and thousands of independents). Collect+, a joint venture with Yodel, formerly Home Delivery Network Limited, provides a parcel collection and drop off service at more than 3,400 PayPoint retailers. Its ATM network numbers more than 2,400 ‘LINK’ branded machines across the UK, mainly in the same sites as PayPoint terminals.

In Romania, the branded retail network numbers over 5,000 terminals located in local shops, processing cash bill payments for utilities and mobile phone top-ups. In Ireland, over 500 outlets in shops and credit unions process mobile top-ups and bill payments.

Internet

PayPoint.net is an internet payment service provider linking into all major UK acquiring banks to deliver secure online credit and debit card payments for over 5,500 web merchants. It offers a comprehensive set of products ranging from a transaction gateway through to a bureau service and FraudGuard, an advanced service to mitigate the risk of fraud.

PayByPhone

PayByPhone is a leading international provider of services to parking authorities allowing consumers to use their mobile phones to pay for their parking by credit or debit card.  It has contracts in the UK, France, Canada and the USA.

PayPoint is widely recognised for its leadership in prepayment systems, smart technology and consumer service.

For further information, please contact:

S.C. PayPoint Services S.R.L.,

Mara Popescu, PR Specialist

Tel: +4021 409 1400; Fax: +4021 409 1401; Mobil: +4072 386 0661

marapopescu@paypoint.com