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

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.

No volume associated with this dip.

Hardly a big sell off, good on you g.

goldfinger - 21 Mar 2014 15:56 - 492 of 496

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

Found this goldfinger

SafeCharge handles transactions for European betting companies and also for businesses in the foreign exchange trading sector. Have operations in the UK, Cyprus, Bulgaria, Israel, Germany and Austria.

They also have a strategic partnership with Worldpay a global leader in payment processing,

Worldpay, I bet they will be affected then if the US brings in further legislation.

Cheers DC.

Just having a break my sugar levels have fallen.

Take it easy.:-))

Who the 'f' knows what is going on - I did not get out, probably wish I had come Monday. Going to wait till I try to do some research over the weekend. Nite all

Hi GF
I am out of OPAY too. I think history could repeat itself with a lot of volatility. May be tempted back if things settle down. I would not touch SafeCharge in this climate.

Up and down like a brides nightie !

Wish I was the bride!!!!!

LOL.

Will be interesting to see what they put in the 'outlook statement' on results day.

I am still in there, another hairy day but not too bad.