Payment terminal supplier Smartpay enjoyed strong growth in revenue during the September half-year as a result of its successful campaign to increase its terminal base in Australia, but higher operating costs meant earnings were down. Despite rising costs, the company is pressing ahead with the relaunch of its business in New Zealand. The company’s terminal fleet grew from 46,000 to 48,000 in the six months to September. All of that growth was in the Australian market, where the fleet grew from 15,700 to 17,700. Smartpay claims a 7.1 per cent share of the terminal market in Australia – up from 6.3 per cent in the March half. Revenue of A$46.9 million was up 32.5 per cent on the previous corresponding period. Of total revenue, $39.8 million was from the Australian operation and $7.1 million from New Zealand. But operating expenses grew 37.4 per cent, largely a result of higher payments to suppliers and employees, and system development costs. Spending on technology and systems also increased. The company reported expenses of close to $1 million dealing with a cyber incident that occurred earlier this year. Net profit fell 17.1 per cent from $3.2 million in the September half last year to $2.6 million in the latest half. The company’s preferred measure, normalised EBITDA, was up 31 per cent to $10.6 million. However, operating cash flow was down 10.7 per cent to $8.9 million. Smartpay shifted its focus from New Zealand to Australia in 2020, saying it saw greater opportunity there. Its Australian terminal fleet was just 4613 in March 2020. With its growth strategy in Australia working well, earlier this year the company announced that it would adapt its approach in the Australian market to New Zealand, including moving to merchant acquiring. It flagged the launch of a refreshed NZ proposition, which would include the upgrading of the fleet, a new marketing campaign and adjustments to its revenue model. It uses Cuscal as its payment gateway in Australia and Worldline in New Zealand. In future it will use Cuscal in both markets. In its results presentation yesterday, the company said its program for next year includes testing and certification of a new Android terminal for the New Zealand market, completion of the development of a new product offering and finalisation of an agreement with Cuscal to provide gateway services in NZ.