PAX Global Technology Announces 2023 Interim Results
USD 456 million sales achieved during the first half of the year, with year-on-year increases of dividend payout, net margin, and R&D expenditure.
PAX Global Technology Limited (“PAX” or the “Group”, stock code: 00327.HK), one of the world’s leading providers of electronic payment terminal solutions and related services, has announced unaudited interim results for the six months ended 30 June 2023 (the “Period”).
In the first half of 2023, slowing global economic growth and high interest rates resulted in more conservative terminal deployment plans by customers worldwide. Group revenue was HK$ 3,568.6 million (circa USD 456 million), with both gross profit and net profit margins increasing respectively to 44% and 18.5%.
* Figures above are shown in HK$
PAX Android smart solutions empower merchant digital transformation
PAX Technology's Android SmartPOS solutions cater to a wide range of business segments, providing advantages of scalability and improved operational cost-effectiveness. The Group’s cloud-based SaaS solutions, such as the MAXSTORE platform, integrate seamlessly with PAX products, enabling a suite of features including device management, software application deployment, and real-time transaction data insights. These capabilities empower customers to make better data-driven business decisions. More Acquiring Banks, Payment Service Providers (“PSPs”) and payment system integrator partners continued to adopt PAX Android smart solutions to facilitate digital transformation for the merchants they serve.
PAX also launched a suite of new products during the first half of 2023, including Android smart payment solutions (such as the A920MAX, A50S, and the IP67 rated Android PDA A6650) and Android-based EPOS products (such as the Elys Series). All of these new products deliver upgraded functionality and adhere to the latest Payment Card Industry (PCI) requirements. The Elys series was honoured with the prestigious Red Dot Award (Product Design) and iF Design Award, garnering international recognition of the seamless fusion of product functionality and visual aesthetics.
PAX became the first Asian terminal vendor to be elected to the PCI SSC Advisory Board
Earlier this year, PAX was invited to join the Board of Advisors of the Payment Card Industry Security Standards Council (PCI SSC), becoming the first Asian-based payment terminal provider to take up the role, further enhancing PAX Technology's recognition as a pioneer in the field of international payment acceptance solutions.
Mr. Jack LU, Chief Executive Officer of PAX, commented on the interim results by saying: “Despite short-term macroeconomic challenges, the proliferation of electronic payments continues to be a significant, and ongoing, global trend. The continued advancement of payment technology, along with growing consumer appetite for convenient & secure payment options, as well as the cashless initiatives promoted by governments worldwide, have and will continue to open up new opportunities for PAX solutions.”
Europe, the Middle East and Africa (EMEA)
Across the EMEA region, many countries encountered economic uncertainties, which resulted in a temporary slowdown in H1 market demand. However, the Group is confident that it's strong brand recognition and quality products, as well as its reliance on the most reputable network of channel partner networks, will continue to positively influence growth in the region.
Italy, the United Kingdom, Turkey, Spain, Germany, and France all generated notable sales during the first half of 2023, where market demand for PAX Android SmartPOS solutions remains high, particularly for beautifully designed products such as the best-selling A920Pro model, and for the services provided by the MAXSTORE platform.
In the Middle East and Africa, the electronic payment industry continues to flourish. During the period, PAX recorded sales growth in Nigeria, South Africa and the United Arab Emirates.
Latin America and the Commonwealth of Independent States (LACIS)
Brazil has faced multiple economic challenges, placing pressure on local business investment activities. As a result, payment terminal deployment projects also slowed down. This trend became evident in the second half of 2022, and continued throughout the first half of 2023.
In Chile, Mexico and Argentina, PAX has devoted more resources to developing new business opportunities, and as a result has further strengthened its sales & distribution network. The A-series Android smart payment products received widespread acclaim and recorded significant sales growth during the period.
The United States of America and Canada (USCA)
Thanks to increasing market demand for diverse payment options and value-added services, PAX smart solutions have maintained strong sales momentum in North America. Revenue during H1 reached a record-breaking high, representing a year-on-year increase of over 20%.
PAX continued to forge stronger partnerships with the vast ISO network, aiming to expanding the broader use-case scope of Android smart terminal solutions at merchant locations, ranging from restaurants, retail stores, football clubs to electric vehicle charging stations. Retail value-added services also continued to be in high demand, with the new Elys series being first launched in North America, with very positive market feedback.
Asia Pacific Region (APAC)
The Group grew considerably across many Asian countries, propelled by innovative products and increasing PAX brand recognition. Nevertheless, due to the longer-than-expected sales cycle in India, the temporary sales slowdown offset the growth of other markets in the region.
Indonesia, one of the most vibrant economies in Southeast Asia, has been benefitting from its government’s dedication to drive the modernisation of the nation’s electronic payment system, which is opening up more opportunities for the payment terminal industry. Sales from Indonesia during the first half of 2023 surpassed the performance of the entire 2022 financial year, a notable achievement.
In Japan, the Group’s collaboration with local partners and PSPs yielded positive outcomes, driving the widespread adoption of PAX Android SmartPOS products, achieving significant sales growth during the period. Likewise, in Singapore and New Zealand, PAX continued to focus on building brand awareness and garnering clients’ trust and recognition, resulting in a steady increase in shipment volumes during the first half of 2023.
“Looking ahead, the global payment industry continues to provide prosperous opportunities. PAX will continue to explore more business opportunities with acquiring banks, PSPs and distribution partners, delivering future-proofed payment solutions for merchants and consumers across the globe.” - Mr. Jack LU, Chief Executive Officer of PAX