News

UK ATM operator Cardpoint aims to hit '04 earnings target

November 22, 2004

The Independent Online: ATM operator Cardpoint, which reported higher-than-expected profits on Nov. 22, plans to charge user fees at up to 400 of the 816 ATMs it acquired from HBOS in June.

Cardpoint, which operates 2,800 ATMs at retail sites, reported pre-tax profits of £1.8 million (U.S. $3.3 million) in the year to the end of September, up from £500,000 (U.S. $934,000) a year ago.

The company has so far made 100 of the HBOS machines charging, and 250 are set to be converted by March. That number could eventually rise to 400, charging £1.50 or £1.75 (U.S. $2.80 or $3.26) per withdrawal.

Mark Mills, the chief executive, said that puts Cardpoint on track to hit this year's forecast of £8 million (U.S. $14.9 million) in pre-tax profits, or 12 pence (U.S. 22 cents) earnings per share.

Concern over an increase in the number of ATMs charging user fees in the UK has led the House of Commons' Treasury Select Committee, chaired by John McFall, to launch an inquiry into the issue. The committee has requested submissions from involved parties and will hold its first open hearing on Dec. 21.

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