Revenue and EBITDA in line with market expectations following strong second half growth
• Revenue and EBITDA for 2011 in line with market expectations, following strong growth in the second half of 2011.
• Strong performance by NETBANX straight-through-processing (“STP”) division – due to underlying growth from existing and new merchants and second half STP seasonality. Platform in place for continued growth in 2012.
• Continued focus on growing the NETELLER eWallet including diversification beyond gaming.
• Good progress integrating STP businesses under the NETBANX brand – business now completely repositioned.
• Well placed for further growth in 2012, Board confident about Group’s prospects.
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Optimal Payments Plc (the “Group”) announces its trading update for the year ended 31 December 2011 ahead of its full year results which it expects to announce on 29 March 2012.
As anticipated, trading in the second half has been stronger than the first, mainly driven by strong performance of the ‘NETBANX’ STP division. As a result, both revenue and EBITDA for the full year ended 31 December 2011 are in line with market expectations.
Performance of the Group’s ‘NETELLER’ stored value business is in line with market expectations in what remain challenging markets. Stored value revenues include approximately $2 million of revenue from the expiry of e-money balances which will not recur due to regulatory changes. Steps continue to be taken to accelerate the growth trajectory of this business within the gaming sector and to pursue diversification outside of gaming.
The second half of 2011 saw considerable progress on refocusing the Group following the acquisition of the OP Inc business in early 2011. The integration of the two STP businesses under the NETBANX brand, reorganisation of management structures and alignment of the Group’s operations towards growth opportunities have now been concluded and the Group is completely repositioned. The NETBANX STP division now represents over two thirds of the Group’s revenues, up from a quarter in 2010, while revenues from the gaming sector now represent around 55% of Group revenues, compared to 90% in 2010.
Commenting on today’s trading update, Joel Leonoff, President & CEO, said:
“I am extremely pleased with the progress the Group has made in 2011. We have successfully integrated the two businesses under the NETELLER and NETBANX brands and have repositioned the Group to underpin our strategy for sustained growth going forward. The management team continues to work effectively to drive the Group forward and we see many exciting opportunities for both our NETBANX processing and NETELLER stored value businesses in 2012 and beyond.
The outlook for 2012 is positive and the Board is confident about the Group’s prospects.”
About Optimal Payments Plc
Trusted by businesses and consumers in over 180 countries to move and manage billions of dollars each year, Optimal Payments Plc is the leading payments company offering a true alternative to banks and card schemes. Merchants use the NETBANX® processing service to simplify how they accept and settle card, direct-from-bank, and cash payments; and the NETELLER® payment account to increase margins, capture new customers and increase their lifetime value. Being independent has allowed the company to support tens-of-thousands of retailers and merchants in many geographies and across multiple industries.
Optimal Payments Plc is quoted on the London Stock Exchange's AIM, with a ticker symbol of OPAY. Subsidiary company NETELLER (UK) Ltd is authorised and regulated as an e-money issuer by the UK's Financial Services Authority (FSA).
Media and Investor Contacts
Optimal Payments' media relations team can be contacted through the Media Relations Contact page. Relations with the investor and analyst community are managed by Citigate Dewe Rogerson who can be contacted through the Investor Relations Contact page.