SMARTPAY REVISES EARNINGS GUIDANCE – NZ MARKET WEAKER THAN EXPECTED
Monday, February 20, 2012

AUCKLAND, 20th February 2012 - SmartPay (NZX: SPY) advises that due to the delay in finalising some of its customer contracts and lower than expected uplift in NZ sales, originally expected to occur within the current 31 March 2012 financial year, it is now extremely unlikely that the Company will achieve its previous earnings guidance as indicated in the Company's interim results announced on 25 November 2011.

The company continues to maintain its market share in New Zealand with the investment in the Australian market starting to show results with announcements expected soon.

 

The final end year profit numbers will be heavily dependent on the timing of the finalisation and delivery of a number of key contracts which the Company is currently working on. Therefore no guidance can be given at this time, except to note that the final result will be a function of the number and value of contracts currently underway which complete prior to the 31 March 2012 year end date.

 

The previous guidance was based on the expectation that a number of significant customer contracts would be completed before the 31 March financial year end, hence would be included in the current financial year's result.  However with less than 6 weeks until year end it is now increasingly unlikely that all of these contracts will complete in the timeframe due to delays in obtaining the firm orders, and meeting compliance requirements, thereby potentially impacting on the financial year end result.

Importantly Management of the Company regards this to be largely a timing issue with the majority of these contracts still expected to be concluded, albeit after the 31 March 2012 year end date.  This will see the profits from these contracts falling into the 2013 financial year.

The Company expects to provide further guidance once there is more clarity around the final year end figures.

ENDS

For further information contact:

 

Wayne Johnson, Chairman SmartPay Mobile +61 411 544 449

Bradley Gerdis, Group CEO, SmartPay, +61 410 623 338

Julien Leys, JML Communications, +64 21 655 598

About SmartPay Limited

SmartPay is a leading provider of integrated merchant services utilising the Internet and broadband connectivity.

 

SmartPay's product set includes:

1. Telecommunications products and services including Voice Over IP, Broadband, EFTPOS terminals and secure EFTPOS internet connectivity
2. Audio and video, music, messaging and media via its Retail Radio product set.
3. Prepayment products and transactional processing services for the taxi industry.

 

SmartPay Core Products include:

 

•           Wi-Fi - one of the largest networks in New Zealand

•           In-store Audio Visual Promotional Systems - Retail Radio

•           Internet enabled EFTPOS equipment sales and rental

•           Gift Cards

•           Secure Internet Payments

•           Mobile Top-up

•           Calling Cards

•           Bill Payment Solutions

•           Voice over IP (VOIP)

•           Online Payments

For more information visit - www.smartpayltd.com