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

Lol, hope you did not get too wet. :-))

Broker Buy Note Out..........

17 Sep 2013 Optimal Pay OPAY Numis Buy 250.50 256.00 300.00 325.00 Retains

325p SP target.

Deutsche Bank AG > 3%

ehhhhh have you posted wrong bit skinny?

No - click on the link?

GF -can you read the link?

I did strange that it didnt show present page but the conditions in small print.

Good news anyway.

Just added some more............well did do after 10 mins IG playing up again with I Explorer. Got them at price I wanted.......248.99p.

Yep can now.

On a positive run again, here we go.

Nice one. Wish I had got into CRND this morning, have you seen how well that has done today - ah! well he who hesitates is lost as they say. Keep going Opay, I need some serious dosh.

CRND yep just had a look very nice, mind they can fall just as much as that so Ill keep on ignoring all miners as I think they are too risky. Same with oileys.

Better to get rich slow than not rich at all.

I am too old to get rich now gf but a little punt and trebling some money this morning would have been very nice - alas I am too nervous these days to loose any more as I need lots doing to my home and only me to pay for it. No I am not a rich bitch just an ordinary bitch haha!! good to see another rise with opay - keep going.

You are never too old. Got to be positive but carefull.

It is a case of having the bottle these days I am afraid and not the gin one. Like everyone else, lost too much and as I said earlier he who hesitates is lost. Neer mind as they say something else will turn up. Have a good evening.

..

Questor share tip: Optimal Payments taps into mobile growth
TelegraphBy John Ficenec | Telegraph – 13 hours ago

Optimal Payments (Other OTC: NVAFF - news) is exposed to rapid growth in mobile payments and the return of US gaming, says Questor

Optimal Payments 250p-6 Questor says HOLD

SHARES in Aim-listed online payment platform Optimal Payments jumped by 10pc as it reported soaring first-half profits this week.

An increasing amount of shopping and banking is being done online and through mobile devices these days. Optimal Payments helps customers use credit cards, debit cards and direct debits online by processing them through a technology system designed and managed by the company.

Discussing the results, Joel Leonoff, chief executive, said he was “proud and ecstatic” of Optimal’s performance. However, there could be more to come as he outlined an “aggressive approach” to mergers and acquisitions in the second half.

The company has two main sources of revenue: NETELLER, an “e-wallet” business into which online gamblers can deposit money before playing games, and NETBANX, a system that processes transactions for online retailers. Both performed strongly, lifting group revenue by 50pc to $118m (£74.2m).

NETELLER is the faster growing of the two as revenue almost doubled to $28.3m during the first six months, while gross margins improved to 83pc, from 77pc. The NETBANX business is no slouch either, increasing revenue by 45pc to $90m, on gross margins stable at 43pc.

With revenue increasing strongly and margins improving, pre-tax profits jumped to $15.5m, for the half-year ended June, from $1.7m a year earlier. Group net cash increased by $12.9m to $70.8m and group loans were down to $9.8m from $25.8m a year earlier.

There are opportunities for further growth, too. Gaming legislation in the US is easing with New Jersey, Delaware and Nevada all legalising online poker and casino games this year. As companies obtain licences in these states the market for the NETELLER product should grow rapidly. That could leave analysts’ expectations of 12pc revenue growth to $270m in 2014 and adjusted pre-tax profits of $46m looking conservative.

This investment is not without its risks. In 2006, the US withdrew online gaming licences, causing Optimal’s shares to suffer a crash from which they are only just recovering. Also, 39pc of the group’s fee revenue comes from just one client.

Optimal doesn’t expect to repeat the stellar revenue growth next year but with shares trading on 16.5 times 2013 forecasts, falling to 15.7 times, it doesn’t need to. This is undoubtedly a high-risk investment. However the balance sheet strength allows growth through acquisition, so certainly one to watch.

Cheers dc - I know all about 2006 and am sitting patiently along with many others who paid pounds more than myself. I suppose I am lucky I only paid £1.83'ish all those years ago. Thanks for the information above, it has to come right one day as it used to be £10 - £12 and above per share. It is only waiting now for the us licence and it will as I have said many times fly. Definitely one to watch for those not in.

Pleased I can help, good luck and well done so far.

Cheers, good night. Still on a borrowed computer as mine dead in the sick bay again - been hacked, bugged or something and knowhow don't know what they are going to do with it. However, at least I have the use of one thank goodness. No point in worrying just go with the flow.

.

Hi Dreamcatcher.
Picked this up on the wire through Real Alpha!

ACIW
ACI Worldwide acquires Official Payments for $8.35/share

ACI Worldwide (ACIW -0.3%) acquires electronic bill payment solutions provider Official Payments (OPAY -2.2%) for $8.35/share in cash (a 1.8% discount from Friday's close).
Official Payments generated $136M in revenue and a $6M net loss in FY 2012. It has over 3,000 customers and processes 20M payments annually.


Sounds as though they are underpaying! But explains rise in price.