Strong spending at retailers, pubs, restaurants and other hospitality venues has helped Tyro Payments to a bumper first-half and prompted the fintech to lift its profit guidance, sparking a rally in its shares.

Tyro, a provider of eftpos services that last year rejected two takeover bids as too low, on Monday released unaudited figures on its first-half performance, reporting a 45 per cent surge in revenue to $216.6 million.

Chief executive Jon Davey said transactions in hospitality and retail had been particularly strong, pointing to market share gains and the lack of COVID-19 lockdowns.

Hospitality is the Tyro’s biggest sector, accounting for 46 per cent of its transactions by value, followed by retail, which makes up about a third of its transactions. In early afternoon trading Tyro shares had shot up 6.9 per cent to $1.46.

Tyro also raised its guidance, saying it expected to process between $42.5 and $43.5 billion in transactions over the 2023 financial year, while it also boosted its outlook for gross profits.

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Tyro, a challenger to the big banks, has faced a tough period lately, suffering a drop of more than 40 per cent in its share price in the past year amid a plunge in fintech valuations. But Davey said it was benefiting from strong spending and a cost-cutting program, though it remained cautious about the outlook for consumer spending.

“The first half of FY23 has been exceptionally strong; however, in forecasting the second half of FY23, we are taking a cautious approach and have allowed for some softening of consumer trading conditions due to rising interest rates and other macroeconomic factors,” Davey said.

The upgrade comes after Tyro last year rebuffed two non-binding takeover bids from private equity firm Potentia Capital, to the frustration of Tyro’s biggest shareholder, technology billionaire Mike Cannon-Brookes.