IncentiaPay — formerly Gold Coast-based BPS Technology — announces $62 million loss

THE operator of the Gold Coast Bartercard trade exchange system has announced a huge full-year loss for the past financial year. Find out why.

IncentiaPay is banking on the Alipay rollout to deliver growth for the business. Nopphaket Maleenant pays for her meal at Chong Co Thai Pacific Fair with Alipay. Picture: Jerad Williams

INCENTIAPAY’S first results since changing its name from BPS Technology has seen it slump to a full-year loss of $62 million due to impairments, restructuring costs and the decline of the Bartercard business.

In the previous financial year it released a profit of $10.28 million.

Investors punished the stock in intraday trading, sending the share price down close to 20 per cent to 18.5¢.

BPS Technology became IncentiaPay in April after unveiling plans to acquire digital agency Gruden and deepen its expansion into the digital payments realm including Chinese platform Alipay.

IncentiaPay CEO Iain Dunstan and George Lawson from Alipay at the Alipay launch at Skypoint at Q1 in Surfers Paradise. Picture: Glenn Hampson

Today, its full-year results make grim reading for shareholders.

Revenue flatlined at $110 million while the company booked $47.2 million of impairments in non-cash assets, much of which related to the Bartercard business.

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Revenue at Bartercard plunged 25 per cent to $29.38 million, due to what IncentiaPay said was a decline in trading within the exchange.

However, revenue from restaurant and activity guide Entertainment Publications surged 18 per cent to $77.4 million, largely because of growth in the corporate marketing solutions division as well as an increase in gift card revenue.

IncentiaPay — then BPS Technology — signed a landmark deal with Alipay last year. Picture: Glenn Hampson

Chairman Murray d’Almeida said the result is not a strong one for IncentiaPay.

“However, our gross revenue has been stable and we are pleased with the renewed focus that has emerged due to the implementation of several key changes,” Mr d’Almeida said.

“As a company we are undertaking a significant restructure and pivoting our strategy to reposition IncentiaPay for growth.

“This commenced at the end of the past calendar year with a renewed management team and continued into this year with new senior leadership appointments, alongside subsequent changes to the board of directors.”

Management changes included founding CEO Trevor Dietz stepping down in the wake of a push by fund managers for a clean sweep of the board.

CEO Iain Dunstan said the company has pulled back from its international operations to focus on growth opportunities, such as Alipay, in the Australian and NZ markets.

Alipay enables Chinese tourists to pay via their mobile phones for products and services, including accommodation, entertainment, car hire and food.

“These opportunities leverage off existing corporate and partnership marketing channels and our growing relationship with Alipay as one of their preferred marketing partners, which enables us to enter and capture the inbound Chinese tourism market,” he said.

“Our partnership with Alipay is set to be a driver of additional revenue growth in FY19 and beyond.”

The then BPS Technology signed a landmark deal with Asian mobile-phone payment platform Alipay in September last year to roll out the payment platform to its network of 35,000-plus merchants.

IncentiaPay said today that since the launch of the merchant portal in February, it has signed 250 merchants up to Alipay and more than 110,000 coupons have been downloaded by Alipay customers.

It said its corporate marketing solutions division is capitalising on the Alipay opportunity by developing a deal to give Chinese tourists access to special offers to redeem during their trips to Australasia.

No dividend was declared by IncentiaPay.

“Investors should note that the board does not expect to declare dividends from the company during the current restructuring period,” IncentiaPay said.