TROUBLED DUBLIN-BASED electronic payments group Payzone made an operating loss of €152.9 million in the six months to the end of March 2008, according to figures published yesterday.
When finance costs and losses incurred by associates were included, Payzone's loss for the period increased to €166.4 million.
This included a goodwill impairment charge of €143 million.
Payzone also took a charge of €8.8 million relating to a restructuring of its businesses in Britain and Germany.
This was the first set of interims published by Payzone since it was formed in December through the merger of Irish e-payments group Alphyra and British ATM operator Cardpoint.
The Alphyra business has since been rebranded under the Payzone name, while Cardpoint now operates as Cashzone.
The interims show Payzone's revenue was €449 million in the six-month period.
This compared to turnover of €63 million posted by Cardpoint in the previous year.
No like-for-like figures were provided for the combined Alphyra/Cardpoint businesses for last year.
Payzone said its UK business had been adversely affected by inefficiencies with its outsourced cash-in-transit provider, which has led to a "shortfall in available cash within some of the ATMs". Competition from "non-surcharging" ATMs has also affected volumes.
Following the merger, Payzone dismissed its chief executive John Nagle and chief financial officer John Williamson after a protracted legal battle. Bob Thian also stood down as chairman following the affair.
Mr Nagle is currently involved in litigation with the company.
Payzone recently raised €40 million through an equity placing and drew down €291 million from Royal Bank of Scotland to refinance its existing debt.
Chairman Peter Smyth said the company was now on a "firm financial footing".
"Despite a difficult start for Payzone with various supplier and integration issues, we believe we now have the financial stability to grow both businesses," Mr Smyth said in his chairman's statement.
Payzone's shares closed down 3 per cent in London yesterday at 16.25 pence. They traded at 71 pence on the day following the merger. Its market value is now just £50.8 million.
Artemis Investment Management yesterday informed the market that it had increased its stake in Payzone to 9.61 per cent.
