Shares in ASX fintech group Smartpay Holdings Ltd (ASX: SMP) have rocketed 11% higher this morning after the group’s third-quarter update.
What did Smartpay report today?
Smartpay reported strong revenue growth to $7.45 million driven primarily by Australian terminal and acquiring volume growth. Total revenue for the ASX fintech jumped 38% higher compared to the prior corresponding period (pcp) and 11% higher than the prior quarter.
Smartpay provides EFTPOS terminals to businesses to enable them to accept card payments. Smartpay currently services over 25,000 merchants with 35,000 EFTPOS terminals across Australia and New Zealand.
Australian acquiring revenue rocketed by 272% or $2.1 million on pcp and 32% on the previous quarter. Australian acquiring terminal numbers have now grown to 4,148 as at the end of December 2019.
Shares in the ASX fintech group have rocketed higher on the back of the strong growth trajectory evident in today’s results. Smartpay said it is on track to achieve its full-year sales forecast of 2,500 terminals in Australia this financial year.
Positively, Australian acquiring margin remains strong and is trending upwards as we head into the final quarter of Smartpay’s financial year.
Smartpay also provided an update on its New Zealand business and assets sale. The conditions for the sale include NZ Commerce Commission clearance, Smartpay shareholder approval and the assignment of material contracts.
The application for NZCC clearance has now been lodged with a decision due date of 30 March 2020.
How have the ASX fintech’s shares performed recently?
The New Zealand-based ASX fintech company has seen its shares climb higher even before today’s announcement. Smartpay shares are up a whopping 264% since the start of November and have become a top ASX growth stock.
Smartpay now boasts a market capitalisation of $123 million and is chasing down fellow payments groups Afterpay Ltd (ASX: APT) and Tyro Payments Ltd (ASX: TYR).
The Smartpay share price is trading at a record high of $0.71 per share after this morning’s strong revenue growth report. I’d be keeping a close eye on the ASX fintech in this final quarter of the financial year.
The post Why shares in this ASX fintech are up 11% today appeared first on Motley Fool Australia.
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Motley Fool contributor Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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.
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