SUPERB RESULTS

REG - Optimal Payments PLC - Interim Results19 Sep 2012 - 07:01

For best results when printing this announcement, please click on the link below: http://pdf.reuters.com/Regnews/regnews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20120919:nRSS5828Ma RNS Number : 5828M Optimal Payments PLC 19 September 2012 Optimal Payments Plc Interim Results for the six months ended 30 June 2012 Strong first half growth, on track to exceed full year market expectations 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. Highlights · 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:$18.0m(2)) principally as a result of the fallout from Black Friday(3) in H1 2011. § Initiatives undertaken in H1 have produced improved results in second half to date. Major investment in NETELLER SV platform now complete and cost base aligned. § US online gaming opportunity taking shape. · Strong demand from existing customers and from new customers won during the first half including Ford Credit, Hockey Canada and Rona. Commercial agreement signed with Lotus F1 Team. · Strong H1 revenue exit run rate positions the Company for further growth in second half and on track to exceed the market consensus full year expectations. Financial summary (unaudited) Six months ended 30 June 2012 2011(5) US$ million US$ million Revenue Straight Through Processing (NETBANX bureau & gateway services) 61.9 36.9 Stored Value (NETELLER eWallet & Net+ cards) 16.2 18.0 Stored Value - discontinued revenues (4) - 2.1 Investment income 0.7 0.4 Total Revenue 78.9 57.4 EBITDA (1) 11.2 6.4 Profit/(loss) before tax 1.7 (4.1) Tax (charge)/recovery (6) (2012 charge relates to 2004/5 period) (2.5) 0.5 Net loss for the period (0.8) (3.6) (1) EBITDA is defined as results of operating activities before depreciation and amortisation and exceptional non-recurring items which are defined as items of income and expense of such size, nature or incidence, that in the view of management their disclosure is relevant to explain the performance of the Group. (2) Excluding discontinued revenues - see note 4. (3) "Black Friday" refers to the regulatory action taken in April 2011 against certain major poker operators which resulted in many players ceasing to play poker worldwide. (4) Discontinued revenues were derived from e-money expiry which is now subject to different rules under the Electronic Money Regulations 2011. (5) 2011 comparables include only 5 months of revenues and costs from the OP Inc business acquired on 1 February 2011. (6) Tax charge in the period relates to expected reassessment of 2004/5 Canadian taxes following a review by the Canadian Revenue Agency which commenced in 2005. The Board has made a full provision for the amount it believes it is likely to be required to pay in respect of withholding taxes and interest. See note 17 in the Financial Statements for more detail. 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

As per usual I opened my big mouth too soon. More patience required - good weekend all, believe it forecast here for rain, rain and more rain, hey ho we will get what it gives to us.

Interims 16 Sept .

Until Monday then, mmmm!!!

3m, Just read in this weeks Shares mag - To early for major upgrades but the market should start to take the opportunity seriously as Optimal has several partnerships with big US gaming names.

If it ever got to Netellars days I would be laughing. Thanks for the above dc - it will come back but when is more to the point?

I'm sure you will have your day with this share 3m. :-))

In the money today here 3 monkies, very nice.

Very nice gf - a lot of selling but not worrying the sp too much - thankfully. Looks like things are going well especially with the news i.e. profits and gaming etc., lets hope it continues, I really need it. I really thought you had sold out gf - I must have been wrong!!! You did say that I was in and you were out some time ago but hey ho, hope you still held some at a good price.

Yes your right I sold them in may/june and got back in about 2 weeks later after an upbeat note/mag article. Just looking bought at 179p and added again at 219p so cant complain.

Should be a lot more to come but its a volatile one.

It is a volatile one alright - always has been but when it flies it flies - when it dives it dives but I still have a funny feeling it may go places again, okay not as Netellar but near as dam it, as Opay. Just need the yanks to get their finger out and we shall be in the money. Oh! I wish. GL

I think we will be especially going up to the new year and these 14 new states come into play.

Pity I dont have a scanner or I could have sanned into the thread.

SCSW mothly tip sheet.

Sounds very positive.

Well done 3m and all.

Cheers dc - well done on a lot of yours. This one really needs nerves of steel.

Well, have I been asleep on this one?! What a nice chart! Don't worry I will not buy, it will only tank if I do but it does look good! Hope it has done you a power of good 3m?!

Optimal Payments PLC (OPAY:LSE) set a new 52-week high during today's trading session when it reached 267.00. Over this period, the share price is up 220.00%.

:o( Sob!

Thanks kim - I must admit it has lifted the spirit a little. I couldn't believe my eyes this morning a nice start to the week and long may it continue for everyone in one way or another.

Thanks kim - I must admit it has lifted the spirit a little. I couldn't believe my eyes this morning a nice start to the week and long may it continue for everyone in one way or another.

Spirits, I'm cheap, just a couple of pints. lol

It's ok 3m, I heard you the first time, no need to rub it in! Haha! :o)