The Smartpay Holdings Ltd (ASX: SMP) share price is storming higher today following the release of a positive third quarter trading update.
In the first 30 minutes of trade, the payment solutions' share price reached an all-time high of 90.5 cents. However, the Smartpay share price has since retraced to 88 cents, up 7.3%, at the time of writing.
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 more than 25,000 business customers including banks, retailers and merchants.
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How did Smartpay perform?
In today's release, Smartpay advised it has booked strong growth over the third quarter of FY21, particularly in its Australian segment.
For the period ending December 31, Smartpay delivered total group revenue of NZ$9.2 million for the third-quarter. This reflected a 24% increase on the prior corresponding period (pcp), and 18% lift quarter-on-quarter.
Most notably for the company was its Australian segment performance which drove the overall higher result. Smartpay recorded $5 million in Australian acquiring revenue in the 3 months, representing a 75% jump on the pcp, and 35% gain over the last quarter.
In comparison, New Zealand climbed just 2% higher through the period against the prior 3 months.
Transacting terminals in Australia stood at 5,775, which grew an additional 1,164 units at the end of the third quarter. The surge was attributed to an uptick in lead generation and customer acquisition activities. Also having some positive impact, was the return of some terminals to transacting status following the COVID-19 disruption.
In addition, transaction volumes across the existing network reported robust trading conditions through the holiday season. Merchant partnerships coupled with higher margin products accounted for 70% of Smartpay's base now using its SmartCharge solution.
About the Smartpay share price
On the back of the sound performance update, the Smartpay share price has reached an all-time high today. Compared to the same time last year, the company's shares have soared more than 72%.
The Smartpay share price reached a 52-week low of 22 cents in March.
