Smartpay released a trading update yesterday, which showed their continued strong growth trend. The quarterly group revenue of $13.2m was up 43% YoY and 32% QoQ and was wholly due to the Australian business, although the mature NZ business held steady.

The general sense from the release was the easy gains from rollout of previously sold but unutilised terminals may have a little way to play out but is probably closer to the end than the beginning. However, the sale and rollout of new units reverting to a 'normal' run rate just means they go from hyper growth to merely mega growth.

What is really pleasing is ARPU on an annualised basis exceeded over NZ$4k for the first time and I think this still has someway to play out over the next 12 months as current COVID fears subside. Further COVID-variant risks continue but when you consider this business - that you might think was most at risk to a pandemic lockdown scenario - is at or very near financial sustainability and has built that in the midst of a pandemic, it makes you wonder what they can do in a more normalised environment.

[Held here and IRL]