Optimal Payments’ revenues jump 40% in H1 2015, Skrill integration proceeds as planned

Optimal Payments Plc (LON:OPAY), which earlier this month completed a $1.2 billion acquisition of Skrill, today reported its financial metrics for the six months ended June 30, 2015.

The performance in the first half of 2015 was in tune with expectations, with revenues and earnings staging a solid rise, whereas the deal with Skrill (the contributions of this business are not included in the H1 results) is expected to beef up the metrics further in the future.

Highlights for H1 2015:

  • Revenues up 40.2% to $223 million (H1 2014: $159.1m).
  • Adjusted EBITDA up 27.9% to $49.9 million (H1 2014: $39.0m).
  • Adjusted profit after tax increased by 18.7% to $37.3 million (H1 2014: $31.4m); statutory profit after tax reported at $2.4m (H1 2014: $27.5m).
  • Adjusted diluted EPS increased 11.4% to $0.12 (H1 2014: $0.11); statutory fully diluted EPS at $0.01 (H1 2014: $0.10)
  • NETELLER Stored Value (“SV”) business: revenues up 20.1% to $49.8 million (H1 2014: $41.4m) in spite of the weakness of the Euro against the USD.
  • NETBANX Straight Through Processing (“STP”) business: revenues up 47.4% to $173 million (H1 2014: $117.4m), incorporating revenue from the acquired US businesses.
  • Group cash and cash equivalents of $113.3 million (31 December 2014: $109.9m) – excludes cash raised on rights issues of $685.3m.

skrillnetelleroptimalOptimal Payments also noted significant progress on key strategic initiatives, including the acquisition of Skrill, announced on 23 March 2015 and completed 10 August 2015. The deal positions the Group as a market leader in the stored value, payment processing and prepaid sectors with the ability to process over 100 payment types in more than 20 languages and over 40 currencies.

The integration of Skrill and subsequent delivery of synergy benefits is proceeding in accordance with Optimal Payments’ plans.

Main market listing

As previously announced and, having completed the acquisition of Skrill, the Group will be seeking the admission of its ordinary shares to listing on the premium segment of the Official List of the UK Listing Authority and admission to trading on the London Stock Exchange’s Main Market for listed securities. It is expected that the Company’s ordinary shares would then be eligible for inclusion in the FTSE 250 Index of the London Stock Exchange.

Capital Markets Day

The Group plans to host a Capital Markets Day during Q4 for investors, analysts and lenders. At the event, management will set out its strategy for the combined businesses of Optimal Payments and Skrill and report on integration progress. This event will take place on 10 November 2015 in London and will be accompanied by a trading update.

Commenting on today’s results, Joel Leonoff, President & CEO, said:

“Our first half results show continued strong performance with growth in NETELLER and NETBANX including a significant contribution from the integration of Meritus & GMA, the US centric businesses we acquired last year. This was achieved in the period in which we also completed the negotiations to acquire Skrill, a transformational transaction for us and for our shareholders and one which positions us as a key player in the global payments industry. I would like to thank the team for their hard work and commitment in delivering impressive results and positioning the company for future growth.”

“Current trading continues to be strong and we believe that the consolidated business places us in a much stronger position in the payments landscape and are eagerly looking forward to our future as a combined entity.”

To view the official filing with the LSE, click here.

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