Payments services company Paysafe Group Plc (LON:PAYS) has issued a brief update on its Q1-2017 results.
While the statement (see full text below) was short on numbers and specifics, the company did state that it has been performing in line with management expectations, reiterating its FY 2017 guidance of low double-digit organic revenue growth, and to at least maintain a 30.1% EBITDA margin for the full year.
Paysafe reported its first $1 billion revenue year in 2016, with top line revenue growth of 63%.
Paysafe operates the Skrill and NETELLER online payments brands.
Paysafe shares were hit hard in December, when a report issued by short selling firm Spotlight Research surfaced, questioning Paysafe’s ties to one of its largest clients bet365 and its role in facilitating supposedly not-so-legal gaming activities by Chinese clients. Paysafe shares reacted by trading down as much as 38%, with Paysafe responding by calling the report inaccurate.
Paysafe then instituted a share buyback program, and its shares have more than recovered from where they were trading before the episode. Paysafe spent £22.4 million during Q1 buying back its own shares in the open market.
The full statement on Q1 issued by Paysafe reads as follows:
09 May 2017
Paysafe Group plc
Annual General Meeting – Interim Management Statement
LONDON, 9 May 2017 – Paysafe Group plc (LSE: PAYS, “Paysafe” or the “Group”), a leading global payment provider, issues the following Interim Management Statement covering the first three months of the financial year 2017, ahead of the Annual General Meeting at 11.30am today in the Isle of Man.
Key Highlights
- Paysafe continues to perform in line with management expectations expressed at the Group’s full-year results for 2016.
- Paysafe reiterates its FY 2017 guidance of low double-digit organic revenue growth, and to at least maintain a 30.1% adjusted EBITDA1 margin in FY 2017.
- Adjusted cash conversion2 remains strong. The Group continues to de-lever even after returning £22.4m of capital to shareholders in the form of a share buyback during the first three months of the year.
Paysafe President and Chief Executive Officer Joel Leonoff said:
Paysafe has had a strong start to 2017 and each of our divisions is performing as expected.
Our business continues to benefit from the disciplined execution of our strategy. Paysafe is focused on driving sustainable organic growth, providing state-of-the-art technology, delivering relevant niche oriented payment solutions, nourishing an entrepreneurial company culture, and identifying and integrating bold acquisitions.
We believe Paysafe’s differentiated and relevant products and services position us very well in a rapidly-evolving payments industry.