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

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.

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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.

A little about ACIW

ACI Worldwide, Inc.(ACI) develops, markets, installs and supports a line of software products and services primarily focused on facilitating electronic payments. In addition to its own products, it distributes, or acts as a sales agent for software developed by third parties. These products and services are used principally by financial institutions, retailers and electronic payment processors, both in domestic and international markets. Its products are sold and supported through distribution networks covering three geographic regions the Americas, Europe/Middle East/Africa (EMEA) and Asia/Pacific. Each distribution network has its own sales force that it supplements with independent reseller and/or distributor networks. Its products are marketed under the ACI Worldwide and ACI Payment Systems brands. In March 2013, it completed the acquisition of Online Resources Corp.

Hi david is Official Payments a different company to Optical payments. Held Optical in the past but no longer now. No news on the Optical company site ?

Thanks DC you are quite correct! It is Official being taken over.

I am afraid I do not understand the above - is it time for me to get out or stay? Only your honest opinion. Dc

Ignore the above 3m. It would not be fair for me too tell you 3m. You will understand.
You have to decide what's best for you . There are several good posts on here, have a good read and decide. Please remember you are not in profit as such till its banked and visa versa you are not in loss till the share is sold

I am still no wiser - I don't really want to sell after waiting 8 years. A good profit would be fantastic and a well deserved one. I suppose sit tight.

If you are worried and would like to lock in some profit , how about top slicing a percentage of the stock you have in this company. You have the best of both worlds then. Another thought, cash in your original investment you put in this stock for a ''free'' run. You can only decide 3m.

Whats official Payments go to do with OPAY????.

Seems to be some confusion here.

Article from Tip Sheet SCSW issued 2 weeks ago.


Skrill bid could trigger consolidation.

Optimal Repayments which reports on the 16th September, looks a big winner in the making. Back in April, we noted Skrill was about to fall under the hammer and this months bid from CVC is seen as a catalyst that could put other payment system providers in the frame in a year when 14 US States introduce online gaming.

Back long again.

Little birdy tells me a bolt on is imminent.

Interesting read.........

http://moneyweek.com/two-great-british-internet-businesses-invest-now/

Bring it on that is all I can say GF. Just hope they go up and up - lots more work to do around my house and need the dosh. Trust you are well. I would be so happy if these went to where they should be.

Good to see you posting 3M.

Yep would be great to see 300p pretty quick and then onto a fiver.

Will soon be acquiring a European bolt on so should get a lot more work from Europe plus all the new US States.

I also hear CEAZERS will be using the wallet, so we should be quids in, in time.

After waiting 8 yrs I think I have time - particularly having had 4 stents hahaha!!!

Dont worry we'lhave loads and loads of dosh.

Need a wheel barrow to move it, make that a white van......no a lorry.he he.