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18 September 2012

Optimal announces 2012 interim results, showing strong first half growth

Strong first half growth, on track to exceed full year market expectations
Wednesday, 19 September 2012 – Optimal Payments Plc (LSE: OPAY) (“Optimal Payments”, the “Group” or the “Company”), a leading online payments provider, today announces its results for the six months ended 30 June 2012.
  • EBITDA (1) up 76% to $11.2m (H1 2011: $6.4m)
  • Revenues up 37% to $78.9m (H1 2011: $57.4m). Fixed costs marginally down following headcount reduction in Q1.
  • Profit before tax $1.7m (H1 2011: loss of $4.1m).
  • Strong organic growth from NETBANX Straight Through Processing division (“STP”), up 68% to $61.9m (H1 2011: $36.9m) with continued strength and growth in Asia.
  • NETELLER Stored Value (“SV”) revenues down to $16.2m (2011:$18.0m (2)) principally as a result of the fallout from Black Friday(3) in H1 2011.
  • Initiatives undertaken in H1 have produced improved results in second half to date. Major investment in NETELLER SV platform now complete and cost base aligned.
  • US online gaming opportunity taking shape.
  • Strong demand from existing customers and from new customers won during the first half including Ford Credit, Hockey Canada and Rona. Commercial agreement signed with Lotus F1 Team.
  • Strong H1 revenue exit run rate positions the Company for further growth in second half and on track to exceed the market consensus full year expectations.

Commenting on today’s results announcement, Joel Leonoff, President & CEO, said:
“The combination of NETELLER and OP Inc. has produced a multi-faceted payment product offering and positioned the emerged business Optimal Payments Plc to benefit from a rapidly evolving online payment market. Our efforts have resulted in a fully integrated and right-sized business with an efficient cost base. Our operationally geared business model, continued focus on product development and R&D, along with our strong presence in the internet payment market have combined to produce significant organic revenue and EBITDA growth.
Our H1 results and strong foundation position the Company well for further growth in H2. The online payment industry continues to consolidate and the Group should benefit from the expected significant growth in both the online and mobile commerce markets.
We see substantial opportunities to provide innovative solutions to merchants and consumers in both the NETELLER eWallet and NETBANX straight through processing divisions. Our R&D focus has positioned Optimal Payments with timely and innovative offerings to take advantage of opportunities in the fast moving marketplace. Additionally, our product strength and long standing experience in the online gaming space positions us well to take advantage of online payment opportunities evolving in the US. The NETELLER brand, which was a market leader in the US prior to UIGEA being enacted, as well as our leadership experience in straight through processing and risk management, should allow Optimal Payments to regain a substantial position in this re-emerging regulated US market.”