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

Agreed, something is going on or about to I would suggest. No sells as I speak, let us hope I haven't spoken too soon.

A nice finish.

Lovely finish to a lovely week on the market.

A very strange day here!! Still in the blue though.

Certainly was 3M and even now buy strength far greater than sell strength. Up 4% plus at one time.

If David Lucas is about later maybe he can inform on level 2 order book.

Personally I don't understand order books and level 2 just an ordinary lay person, ha!ha! Would be nice though.

3M I used to have it but found I was no better off with it in the long run. I did a bit of back testing.

If they made it cheaper I think i would have it again, but its far too dear for a tight Yorkshireman like me.

'Ear all, see all, say nowt;Eyt all, sup all, pay nowt;And if ivver tha does owt fer nowt -Allus do it fer thissen. What's that in English?

Well I understood it as being a COUNTRY GIRL. I should have underlined country. Oh! dear. - Gin goes to the head these days haha!!

That's naughty, only one. lol

No - three DC got the sodding rat saga again outside - thankfully outside. Saw one at 8.15 a.m. pop its face out from under the shed and my friend came this afternoon and emptied some of the contents out of a trap and found the other contents a few inches away. |I don'[t know how he was not sick but God Bless Him he did it and it is now in the dustbin. Not a pleasant thought but hey ho here we go again. Notified school and will be ringing the health authorities tomorrow to make sure the head is doing something. Life is wonderful so long as one does not weaken and the bastards will not grind me down again. Hope all is well with you.

Not a bad day. You need to put rat poison down. It helps catching one at a time but the bait will be eaten and also taken back to the nests and will knock the whole lot out. They breed faster than you can trap them.

DC they are eating poison as fast as I can put it down, it is wired into trays and they are taking the trays unbelievable - now having to wire it into trays on blocks of wood which are larger than the space so they cannot take the trays - trap on the outside of shed under bushes. Checked at 8.00a.m. food gone, Rowland appeared at 8.15 a.m. Friend came at 12.30 p.m. Spent approx. £200 since March 2012. This bait comes from SW Lancs Farmers so not a cheap deal. 12 blocks have gone in 5 days and 3 trays. The rat box is also getting attacked. Neer mind it will get sorted one way or another.

Wow 3m. The commercial poison you are using should take hold. Put a claim into the school. Your eradicating them, only for more to come onto your property from the school. Something you just do not need.

Sorry guys but been out most of day! I find that level 2 pays for itself when trading for the short term as you can see the forward buys and sells bubbling up. If you are buying for the long term I do not think it matters too much.
I shall post the trades tomorrow if the price moves in an interesting way!
Lets hope for a good day tomorrow!

Thanks David.

Thank you from me to.

Extract from recent Numis Broker Note......

By just extrapolating the revenue growth trends and the gross margin you end up with an EBITDA forecast of US$75m for FY13, some 50% higher than the US$50m consensus (eps 22 cents), suggesting Optimal has scope to pleasantly surprise on the upside.
A European acquisition (US$50m sales and US$10m EBITDA) should soon be coming down the pipe and will be eps enhancing.

'Earnings Enhancing' is what we need! Any ideas as to who they are looking to do a deal with?

No not yet. if I find out Ill post it.