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

Easter came and went, I am okayish just have terrible mood swings and don't sleep very well - all the medication I suppose but hey ho! I trust you are fine and dandy dc.

Thanks for the explanation as I did not have a clue but thought by the price that it must be good. A lot bought this today so I just keep everything crossed. I still cannot work out why what I read on their website has not been published. Can I be that lucky? Take care.

Worth reading even more time to re-enter????

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/10853096/Optimal-Payments-to-borrow-for-120m-deal.html

Sounds promising gf. I will hold for now.

Much more potential imo here. Gambling + online payments.

Still have a few of these tucked away in the bottom drawer.

Starting to recover again.

Read all the company financial report again and again and even without the Yanks online gaming their is substantial value here I feel.

Ive been debating this on twitter this morning.

Seems to be still a few wary types about.

Ill prove them wrong.

I am still holding - there is I still think a lot going for these gf. I agree they don't need the Yanks. Have a look at the corporate governance and go into media and see what is going on!!!!

Won't be too long before we will head higher and retest the highs imo. Great potential.

Breaking £4 soon and resumption of uptrend imo.

Every time it gets there it drops so hopefully it will continue to
be on an uptrend.

Canaccord buy rec today tp 575p, on the back of Berenberg on Friday tp 520p. Breaking the 400p again.

Good - let it happen.

On today's acquisition, Canaccord reiterates buy tp 575p.

Chartwise nothing to stop us heading back to to £5 with maybe a bit of resistance around 450p.

Great.

Listen: Optimal Payments - Acquisitions to accelerate expansion in US payments market

Click here

Think the needle has stuck on this one for all the sells showing, 1500 at the same time - not possible - money am needs to sort it out I feel.

Full list coming?

Questor, Daily Telegraph, buy.

Numis just out with a buy rating, tp 700p.

Clearly the two US acquisitions gets OPAY into this large market but de-risks away from gambling into mainstream payments.

Long inverted head and shoulders since March high forming. With such positive newsflow unlikely to be long before we retest 500p and break higher.