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Paymark hits pay dirt with higher dividend

NZ NewswireNZ Newswire 16/08/2016 Edwin Mitson

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

The previous year, the company paid $6m to its owners, ANZ, ASB, BNZ and Westpac. 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 per cent to $68.45m from $52.42m the previous year. Profit after tax was $19.52m, an increase of 62 per cent from the $12.04m 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 $34.08m from $18.9m a year earlier, an increase of 79.8 per cent.

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

Paymark has more than 75 per cent 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.

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