- IncentiaPay (INP) has reduced cost of its workforce by 40 per cent and will have lower sales due to the coronavirus
- The company has reduced its employees’ salaries and working hours
- Senior executives and the Board have also agreed to reduce their salary by between 30 to 40 per cent
- Following the governments’ decision to close pubs, restaurants and clubs, IncentiaPay is expecting to have a drop in sales from its merchants
- On market close, IncentiaPay is down 20 per cent and is selling shares for 0.8¢ per share
IncentiaPay (INP) has updated the market on the impact of COVID-19 to its operations.
Cost Reduction Methods
In order to save costs, the company is aiming to reduce the cost of the workforce by 40 per cent. This includes salary reductions and a loss of work hours.
IncentiaPay’s senior executives and the Board have also agreed to reduce their salary by between 30 to 40 per cent.
Impact on Revenue
The Australian Government announced the immediate closure of all pubs, clubs, restaurants (excluding takeaway and home delivery), cafes and entertainment venues.
The company expects that these measures will affect merchants on its Entertainment platform. This is expected to have a significant effect on the number of sales the company makes from its Entertainment Memberships.
“It has the continued support of its largest shareholder and creditor, Suzerain Investment Holdings Limited (Suzerain), during this difficult time,” the company told the market.
“This support may take place by way of capital support from Suzerain and/or its parent entities on a case-by-case and as-needed basis,” it added.
On market close, IncentiaPay is down 20 per cent and is selling shares for 0.8¢ per share.