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

Oh the old Neteller days GF ! How are you ?

Fine Jimmy its good to see you. I saw your post the other day saying you were still in the market.

How are you doing and whats your thoughts on the market, be wary like mine?.

Ive changed over from being a contrarian mid term investor to a short/mid term trader now that Im more or less retired.

Still about GF , funny, i'm same as you short term trading mainly buying on bad days and nicking a few % on the bounce ,been good this summer ,always interested in a bit of momentum, though missed this one. I'm more in and out at the moment, I sleep better !

LOL, youve described my trading to a T Jimmy looking for market annomalies on the charts.

By god weve both been around for what seems years and years now, seen plenty of people come and go. Were still here plodding on so we must be doing something right.

tenby deckchairs still posting on advfn but on the premium board.

I thought you'd be a billionaire by now :) all we had to do was be a tech geek and start Facebook or twitter ,,don't use either myself.

Use twitter and its very good. Get news from analysts brokers etc a lot quicker than on the boards.

GF i'm still wondering if I should switch from carrier pigeons !!!

LOL jimmy.

Nice to have a good day, lets hope we breakout monday.

Correct GF hope this continues on a roll up and not downwards. Have a good weekend all.

Yep and you have a good one 3m.

Another nice day here.

Long may it continue.

Mid-cap share tip of the week in the Telegraph today.

Oh great - does this mean my day might have come at long last? Trust you are keeping well kim.

Sorry should have said has instead of have - A gin too many, haha!!

Fine thanks 3M, I hope you are enjoying better health?

Firm start to the week.

Broker Forecasts for OPAY.

Look rather stingy to me.


Date

Company Name

Broker

Rec.

Price

Old target price

New target price

Notes




28 Oct 13

Optimal Pay

Numis

Buy

330.13

325.00

350.00

Reiterates


16 Sep 13

Optimal Pay

Canaccord Genuity

Buy

330.13

220.00

380.00

Reiterates

Opay coming with a late run to the close.