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

Just thought you might be interested, a description of the business below -

http://www.londonstockexchange.com/exchange/prices-and-markets/stocks/new-and-recent-issues/new-recent-issue-details.html?issueId=8962

Don't know what to think about the above dc - will opay go down hill or will it sustain? I am waiting for the results which come out at the end of this month and then my big decision will be made.

You could do with a crystal ball 3m.

I think I could do with a couple of balls at the moment dc., life gets harder, could have done with being a relation of the massive lottery winner at the weekend, ha!

19 Mar Numis 600.00 Buy

Prayer mat needed, no more gambling for me I don't think. Hope you are still doing well and making up from one of our great downfalls with rrl dc. Is your brother any better I do hope so? Do you know what happened to tanker, as I haven't seen his name around for ages?

He seems to be getting better, memory wise. A brain injury is very complex. Still under the doctor. Still off work. Very difficult to claim from the driver, when you do not know the future outcome. Many thanks for asking. Tanker or Stan?

Oh! dear very difficult indeed, such a dreadful shame. I hope the future gets better for him and his family - extremely worrying for you all. Don't know who has changed their name or names, we still read a load of tripe one way or another, however they may think the same - freedom of speech or something like that!!!!!!!!! Turn in time and start again tomorrow..

What the heck is happening here - is there something going on with the gaming laws in America again? Getting a lot worrying as they have nearly dropped £1 per share in a week.

No i think its just the high beta on the stock.

3M ill do a round of the boards and see if anyone else as any ideas.

Be back in about 15 minutes.

Thanks gf.

Right Ive been to advfn, iii, and Motley Fool and can find nothing.

A lot asking same thing as we are, BUT I have been doing a bit on googling and found this

...............http://www.4flush.com/online-poker-news/us-online-gambling-threatened-yet-again/16605

and this......................

http://www.4flush.com/online-poker-news/sheldon-adelson-drafts-federal-bill-to-stop-online-gambling/15819

But what you have remember is these guys have a track record trying to ban online over the years and 3 states have already got online regulation passed with a lot of others hoping to get it passed aswel.

So it might be all a storm in a teapot but after last time it was banned we have to be carefull.

Thanks gf - obviously like lots of us I do not know what to make of this, just pondering how many storms and how many tea cups can I handle...... Still may wait until the results next week, just a good job I haven't got balls or there wouldn't be anything left of them by now. Enjoy the weekend.

The more I read the 2 links the less I like it, 3m.

This is a bit worrying.

Theirs always someone isnt their.

Wonder how this affects the new float competitor then?????

Do they cover the USA?????

Wheres DC??????

The new float competitor!!! Crumbs, the only bloody share I have that is doing anything and going tits up rapidly. I do not know if dc even holds these, all I can think is that they have fingers in other pies other than the gaming, everything crossed and decision time shortly. 8 long years is a long time to have a few grand doing nothing at all and age/health is not on my side. gl

No , I don't hold 3m. You do what you feel is best 3m.

g and 3m, Sell or not, toss of a coin.

DC does the new float have dealings with states in the US??

Im out.

I remember the last time so Im taking a fair profit and not risking losing it.

It may as I said earlier be all a storm in a tea cup, but once bitten twice shy.

This news was out yesterday but I bet investors in the states had got wind of it earlier hence the SP fall.

No volume associated with this dip.