Smartpay Holdings Limited reported a 9% increase in revenue to NZD 104.7 million for FY2025 but recorded a net loss and suspended its dividend, signaling challenges ahead despite top-line growth.
- Revenue increased 9% to NZD 104.7 million
- Net loss of NZD 723,000 from continuing operations
- Dividend suspended, down from NZD 0.06 per share previously
- Net tangible assets per share fell to NZD 0.02
- Further details available in NZX announcement and annual report
Revenue Growth Amidst Profitability Challenges
Smartpay Holdings Limited has reported a solid 9% increase in revenue for the 12 months ending 31 March 2025, reaching NZD 104.7 million. This growth reflects ongoing demand for its payment services in New Zealand, a positive sign in a competitive financial services sector.
However, the company’s bottom line tells a more cautious story. Despite higher revenue, Smartpay posted a net loss of NZD 723,000 from continuing operations, a stark reversal from the prior year’s profit. This loss suggests rising costs or operational challenges that have offset the benefits of increased sales.
Dividend Suspension and Asset Impact
In light of the net loss, Smartpay has suspended its dividend for the year, a notable change from the NZD 0.06 per share dividend paid previously. This move may reflect a strategic decision to conserve cash and strengthen the balance sheet amid uncertain conditions.
Net tangible assets per share also declined to NZD 0.02, indicating some erosion in the company’s underlying asset base. Investors will be watching closely to see how management plans to address these pressures and restore profitability.
Looking Ahead
The company’s announcement references further details in its NZX release, investor presentation, and annual report, which will be critical for stakeholders seeking clarity on the drivers behind the loss and the outlook for FY2026. With the payment services sector evolving rapidly, Smartpay’s ability to adapt and manage costs will be key to regaining momentum.
Bottom Line?
Smartpay’s revenue growth is encouraging, but the net loss and dividend suspension raise questions about its near-term resilience.
Questions in the middle?
- What specific factors contributed to the net loss despite revenue growth?
- How does management plan to return to profitability and reinstate dividends?
- What risks or opportunities does Smartpay foresee in the evolving payment services market?