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Economic conditions drive consumer demand for expedited payments, TIO says
September 23, 2008
BURNABY, B.C. — TIO Networks Corp., North America's leading multi-channel expedited bill payment processor continues to experience substantial increases in transactions, payment volumes and transactional revenues. In August the company processed a record 558,000 transactions worth more than $45 million (U.S.).
According to a news release, in the fourth quarter of TIO's fiscal year ended July 31, 2008 management undertook an in-depth review of its operations and reduced G&A expenses to reflect its new "processing-centric" business model. Strong growth in transactional revenue, gross margins, reduced G&A and reduced capital expenditures have positioned TIO to deliver positive EBITDA results in its current quarter of operations, Q1, 2009 and the best annual financial performance as a bill payment processor in the history of the company.
The company has identified a behavioral change in the bill paying habits of U.S. consumers in the face of the ailing U.S. economy. A growing demographic is paying at the last minute and using expedited payments as a tool to manage cash flow and steer clear of costly late fees. This behavioral change is leading to increasing consumer awareness and interest in TIO's premium priced expedited bill payment services. This growing interest has enabled the company to increase a number of its transaction rates, which has improved gross margins.
This consumer demand for expedited payments is creating business momentum for TIO's services within the payment Industry and helping drive the rapid growth of The TIO Network. From April 30th to June 20th, the number location end-points in TIO's processing network had grown 150% from approx 4,000 to over 10,000 location end-points. Subsequent to June 20, 2008, the Company added another 600 end-points to its network.
The company continues to develop new opportunities to grow the network through 3rd party self-service and clerk assisted networks. It is also working on further unlocking the value of its expedited bill payment relationships by processing to online and bank-based consumers.
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