Paymark almost trebles dividend to bank owners

Tuesday 16th August 2016

Paymark, the EFTPOS terminal provider owned by the four major banks, increased its dividend by 178 percent to a total of $16.7 million in the year to the end of March 2016.

The previous year, the company paid $6 million to its owners, ANZ Bank New Zealand, ASB Bank, BNZ Investments and Westpac NZ. In February, the lenders appointed Cameron Partners to conduct a strategic review of the business after receiving interest in their shares.

Revenue rose 30.5 percent to $68.45 million from $52.42 million the previous year. Profit after tax was $19.52 million, an increase of 62 percent from the $12.04 million a year earlier. Although there is little in the accounts to indicate where the revenue increase came from, operating revenue from the four major banks rose to $34.08 million from $18.9 million a year earlier, an increase of 79.8 percent.

The dividend of $16.7 million was paid in two stages. An initial dividend of $9.4 million was paid during the year to the end of March, with another dividend of $7.3 million paid on June 2.

Paymark has more than 75 percent of the market for electronic point of sale terminals. In 2015 it processed more than 1.2 billion transactions with a value of more than $60 billion. There are 140,000 terminals in New Zealand, with 80,000 merchants using them.

(BusinessDesk)

BusinessDesk.co.nz

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