Paysafe reports $10 million in cost savings synergies from Skrill acquisition in 2015

Provider of online payment services Paysafe Group Plc (LON:PAYS) today published its financial metrics for the full year 2015, with the revenue numbers bolstered by the integration of Skrill.

Paysafe said the acquisition of Skrill, which was completed in August 2015, delivered approximately $10 million in cost savings synergies in 2015. Let’s note that at the time when the deal was first announced, the company projected $40 million per annum in ongoing cost saving synergies for the fiscal year ending December 31, 2016 .

Paysafe financed the acquisition by a £463m ($702m) fully-underwritten rights issue and the issue of shares to Skrill investors. The deal was underpinned by establishing debt facilities of €500m ($548m).

It was the impact of acquisition-related costs and foreign exchange, however, that hit Paysafe’s statutory profit after tax for 2015. The profit amounted to $7.4 million, sharply down from $57.7 million registered in 2014. Adjusted profit after tax, excluding the impact of one-off and acquisition-related items, was $108.7 million (2014: $68 million).

Statutory basic earnings per share of $0.02 for FY 2015 reflected the impact of acquisition, restructuring and exceptional charges (2014: $0.21). On a fully diluted basis, statutory earnings per share were $0.02 (2014: $0.19).

During 2015, reported revenues surged 68% to $613.4 million (2014: $365 million). Let’s note that H2 2015 reported revenue reached $390.4 million, exceeding company’s expectations.

For the full report from PaySafe, click here.

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