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

chuckle, chuckle chuckle!

jimmy - that guy is just sooooo predictable ...... i'm amazed he has not yet let his most obnoxious persona out from under the rock, but give him a little time and food

did I say " meddling " here it the parrot once again above

for the record
Cynic - bloody repertoire over the years ( secretary's good job )

marni - 14 Oct 2009 15:09 - 103 of 664
i heard on news last night that some already felt we were in double dip recession.....actually in last recession, stock market NEVER went down, it sidetracked........many companies still undervalued and some still trashed

cynic - 14 Oct 2009 19:58 - 104 of 664
double dip coming? .... bollocks! ..... our company works (in)directly with the chemical and oil industry, and i can tell you that serious enquiries have increased considerably over the last few weeks, and indeed, though perhaps a fluke, a good number, primarily chemical, have become reality

marni - 14 Oct 2009 20:07 - 105 of 664
who cares about your tiny company that you are in charge of or whatever,.....if you are a worker you should be sacked and if you are director or top manager then god help the company as i assume its others in charge that are making up for your constant use of moneyam......in any event its a terrible standard to use in front of juniors in office.

i read that exploration and drilling have fallen off a cliff this year.....i think its down 80% in north sea.

cynic - 14 Oct 2009 20:27 - 106 of 664
do stay off the bottle marni, for you become such a total arsehole when you are on the sauce ..... i can't really believe this is your nature when sober, though as is said, "in vino veritas"

while the last quarter of 2009 has been horrid, and indeed, north sea activities have ground to a halt, there is a whole wide world beyond ..... 2010 is predicted to be fairly subdued, with perhaps the exception of west africa, but 2011/12 is likely to go crazy.

for those who need rigs built and/or older ones refurbished - i.e. the sort of work that LAM does, primarily in M/E - 2010 should see a pick-up as the lead time for this sort of work is inevitably quite drawn out .... thus, i would expect LAM's results over the coming year to be rather better than some doom-merchants predict.

no doubt marni thinks she has far far better knowledge of this industry.

cynic - 06 Sep 2012 21:03 - 244 of 664
i think there are better investments in this sector and part of the world - PFC is the very obvious choice

xxx - 07 Sep 2012 10:05 - 247 of 664
someone RAMPING - PFC ?
As usual ( he/she ) is on the wrong thread and filling down after ...... Getting kicked left right and center all day long around "moneyam"

everybody has different strategies on making money, no long term as you say today but not yesterday after getting out with 1.50p profit.

cynic - 07 Sep 2012 10:32 - 248 of 664
what's up with you you tosser???
metioning that one prefers Company X to Company Y is suddenly deemed to be ramping???????

if you look back, you'll see that i used to be a big fan of LAM but have lost confidence in them ..... i rather feel that LAM's new JV in Saudi is grasping for straws and their only real hope is that someone (PFC?) will take them out

xxx - 07 Sep 2012 11:54 - 249 of 664
Gotcha

did you see a .......? blind an old it seems
you better go to see father X and confess of your sins
money to the ones who deserve it
misery to the devils with BIG mouth ( they have not bleach to clean it up )

cynic - 07 Sep 2012 12:03 - 250 of 664
what a strange chap you are

xxx - 07 Sep 2012 12:46 - 251 of 664
good
all settle now
glad you took the tables
a stoke could be on the way otherwise
and one does not wish that, not even to the worse enemies

xxx - 10 Oct 2012 16:56 - 283 of 664
BIG MOUTH >>>>>>>>> cynic
has spoken once too often with no idea of anything as usual

posters often say ....... do the opposite of the " bed pan face " comment
Shares had reached 85p a couple days ago ( almost 20% up ), from the comment below at 72p offer

cynic - 04 Oct 2012 20:50 - 281 of 282
trick may be to short with guaranteed stop

have fun

hlyeo98 - 10 Oct 2012 17:15 - 284 of 664
I have mentioned before about C that he just does the talking, that's all.

cynic - 10 Oct 2012 17:51 - 285 of 664
... not so in this instance i think - whereas of course hyleo never ever does

it is of course frightfully clever having the gift of hindsight or even prescience ..... i the case of LAM, i think it was ST that had an article discussing the the likelihood of LAM being taken over - that is to say Sunday 7th October, a few days after my own suggestion (and no i didn't) in post 281 - which no doubt goes some way to explain LAM's relative strength yesterday ..... on the other hand, sp has dropped back about 5% today
=================
looking back and as far as i can tell, sp was about 80p when i wrote post 281, so as at now, position is near enough b/e
=================
useful things facts, but never let them get in the way of a good story

xxx - 11 Oct 2012 22:50 - 286 of 664

re - cynic - 10 Oct 2012 17:51 - 285 of 285
looking back and as far as i can tell, sp was about 80p when i wrote post 281
a little lie as usual
share price was 72p offer at close of business on the 4th time of the post 281
cynic - 23 Oct 2013 08:45 - 496 of 664
have taken my profit at 159.25 as market is looking to take a breather

yyy - 26 Mar 2013 11:48 - 405 of 664
re - bad person
You were spotted long time ago as ( cynic person ) that was the reason you decided on using that nickname cos is describe you VERY WELL.

Time an time again posters have been putting up with it but not me, were I noticed those arrogant posting.
When ask about it and not able to win the battle, then change the subjet as above.
You are not only a looser, but also a LIAR ( caught you many many times ) and naturally a "cynic"

note - Caught You In A Lie - song

cynic - 26 Mar 2013 11:50 - 406 of 664
just go and take your medication and stop making a total idiot of yourself by with your wild and totally unsupportable personal allegations and abuse

yyy - 26 Mar 2013 15:04 - 407 of 664
re - totally unsupportable personal allegations
every time a share price rise ..... ( bought yesterday,) no honesty and decency is what you have not got ............. ( and it is very rare for me to post like that after the event,)
you are doing it all the time
FACTS
from the BAO thread

cynic - 02 Feb 2011 10:56 - 60 of 66
glad i bought back in yesterday - provable if the wankers start questioning my honesty again! .....

cynic - 22 Feb 2013 13:04 - 393 of 419
and so i did, later that day at 28.75, though relatively modestly ..... yes, i know i kept that one quiet as i was unsure whether or not it was a smart move
dreamcatcher - 22 Feb 2013 20:56 - 396 of 419

cynic - 22 Feb 2013 21:11 - 397 of 419
i have no need .... i own up to mistakes, and assuredly this was not one - read 392

dreamcatcher - 22 Feb 2013 21:37 - 398 of 419
I'm only joking but it could be read that you were thinking of shorting (post 392).
Then post (393) some three days later if you shorted later that day, your post states you indeed shorted . The day of this post the share happens to lets say crash after the three days before were fairly modest falls. It can be read this way, not that I am reading it that way. In other words not to be picked up about it, would be best would it not, to post ones actions not three days later?

dreamcatcher - 22 Feb 2013 23:04 - 400 of 421
Very fair what I have written . Put it another way - An oil company is a few days away from TD. I come on the thread and say I might come in on this one. Three days later no oil found, the share crashes. Then when I'm asked, I say no did not come in in the end.
Then the same again on another oil company near to TD. I write I may come in on this one. A few days later they announce millions barrels of oil found, the share races north. I then write on the thread I was in. How long can I do this before questions are asked. lol

cynic - 23 Feb 2013 09:22 - 401 of 421
it's ok DC .... obviously a bit tetchy yesterday :-)
you're right, and it is very rare for me to post like that after the event, but i was just (too) pleased with myself for having made another correct call

from the PFC thread .............

cynic - 26 Sep 2012 17:25 - 433 of 507
i confess i bought back 1/2 of this morning's sell at 1580 and now keep my fingers x'ed that the market in general will bounce, which is likely to drag PFC along with it ..... sure as hell i wouldn't have dared short the stock at any point

cynic - 26 Mar 2013 15:06 - 408 of 664
none of what i posted can conceivably be construed as lying - and nor is it - except by a bigotted and racist gnome such as yourself .... but if that is what you wish to believe, then you carry on and let the maggots continue chomping on your bile-laden pancreas and liver
yyy - 26 Mar 2013 16:40 - 409 of 664
The court that you prepare the papers for, found you GUILTY of all the above
Your vile tonge found its place again
just because someone has explose you once again
stop spiting as you are posting
the serpent has not got any venon left

All what you been posting is lies
407 post is the evidence .........GUILTY
take him down

hlyeo98 - 26 Mar 2013 18:27 - 416 of 664
Wise words from cynic as usual. We all know you are very religious and read the Quran and also sometimes extremely vulgar and corrupt (see BARC thread)

yyy - 26 Mar 2013 18:53 - 417 of 664
It seems is not only a LIAR but as a good "cynic" lets his tonge go wild and then blame the others and start early on the morning, sign of getting out of bed on the wrong side they say.

Conclution
BARSTERWARD of a funny origin and more yet funny religion what do you expect.
A GRASS and do not forget a STALKER aswell
Glad to exposed such a person

For the record from the BARC thread...........

cynic - 25 Mar 2013 20:07 - 1134 of 1138
hyleo - am i not correct in thinking that you regularly shout SELL, SELL, SELL from the rooftops but lack the balls ever to stick money in your gaping orifice?

hlyeo98 - 26 Mar 2013 08:29 - 1135 of 1138
Are u saying BARC a buy then?
I think you are the most vulgar and uncivilized person on this forum.
Certainly tells a story of your upbringing.

cynic - 26 Mar 2013 08:35 - 1136 of 1138
no - i'm neutral on banks ..... and just because you don't like what i write does not make me uncivilised (please learn to spell in the english manner!) ..... btw, i assume that what i wrote above was absolutely true, for assuredly you do not dispute that i reckon you're all mouth

hlyeo98 - 26 Mar 2013 08:44 - 1137 of 1138
It does not concern you whether I buy or sell?
And you are forever sitting on fences with your neutral opinions.

cynic - 26 Mar 2013 08:50 - 1138 of 1138
not at all ..... i have a trading portfolio which is currently 16 strong; sometimes it's a bit bigger and sometimes a little less and i keep an watch on about 40/50 stocks/indices

however, and i'm more than happy to repeat, you're all mouth and trousers
cynic - 26 Mar 2013 20:18 - 418 of 664
you two are very lucky .... you are so compatible, you can ride into the sunset holding hands .... enjoy enjoy!

to me, combined you are less irritating than a single gnat's bite .... indeed, merely a couple of risible poltroons

yyy - 26 Mar 2013 22:32 - 419 of 664
Did any one else apart from that apparent wife of yours ... that you have answers for anything, that is the reason for her to keep you away from home.

re - you two are very lucky .... you are so compatible,

Is better to be compatible with someone I do not know, that live with someone that makes you sleep on the spare room and ...........

...a little bird told me, that you went back to the house the other day ( forgot the glasses - thick like the bottom of a drinking glass) she (wife ) was already having tea with someone else and explaning what a relive it was when you are away.

Viva la vida ( a mexican will say ) but not the way you live yours

Word of Wisdom: "The early bird may get the worm, but the second mouse gets the cheese."

just found out is wanted also

Anyway back to OPAY , hopefully not going to finish on a low today .

I was wondering when we were going to get back to business.

This appears to be an old data breach and hopefully one which is totally overdone. Markets are nervous on any such news in the wake of Talk Talk. Still my largest holding though I have upped KNOS and EMIS to equalweight it a bit more.

Hopefully this blows over next week.

Had it have been a recent data breach (like Talk) i would have stayed well away ,but as you say an old problem and hopefully overdone .
Does make me wonder why it came out now though ..

the markets' current mood is generally bearish, so any bad news is magnified, and potentially good is overlooked ..... similar at IAG this morning and also CINE, though that was more like pump and dump by canaccord

A lot of positive news in Rns's is going unrewarded . Agree with CINE. :-))

From what I understand small data breaches are occurring all the time or at least I should say attempts/attacks are occurring all the time, particularly in payment services/high personal data holding companies. Let's also not forget one of the breaches was Skrill related. We could do with a full list move sooner rather than later though.

Agreed ,i was surprised that IAG went down like that .
It does seem easier to short stock now rather than go long .

There was an article from Motley Fool yesterday it seems

Alan Oscroft - Thursday, 29 October, 2015 | More on: OPAY

Would you risk your money on one of the competing mobile payments systems right now? You might be put off by the Monitise collapse, which has seen a bone-jarring 96% price crash since February 2014’s peak. But one competitor down means there’s a better chance for Optimal Payments (LSE: OPAY), surely?

Optimal Payments shares have been a bit erratic of late, but were up 500% over the past five years, to 348p by the close of business on Wednesday. But then the price crashed by 20% in early trading on Thursday morning, as the firm admitted it had suffered breaches in its customer data security.

The immediate price fall seems to have been something of an over-reaction, and as it has become clear that these breaches took place around 2011 to 2012 or earlier, the price recovered to stand 12% down at 306p approaching midday. But that’s still a significant dent, and with the news breaking so soon after the cyber attack at TalkTalk Telecom, users of the system and shareholders of Optimal Payments are understandably worried, especially at a time when Apple Pay is taking the market by storm.

Repeated breaches
The breaches reported by Optimal, which have resulted in “a small amount of customers’ personal data” now being in the public domain, with allegations suggesting that the same has happened to “a more material amount of customers’ personal data“, apparently took place at the company’s NETELLER subsidiary in or before 2011, and at Moneybookers Limited (which is now owned by Optimal via a series of acquisitions) in or before 2012.

Both had previously been targets of cyber attacks in 2009 and 2010, although the company assured us that no financial losses were incurred. The latest breaches don’t sound likely to lead to direct financial loss either, with Reuters reporting that it is only names and email address of customers that have been accessed, and which are now available for sale on the so-called dark web.

But even if no money is lost, the apparent fact that companies can suffer repeated breaches of security is a serious concern, and it’s one that could kill a smaller operator’s prospects.

Is Optimal Payments a company to invest in now? Well, I wouldn’t have bought it even before this news, because it’s in a heavily competitive market, and it doesn’t have the barriers to entry needed to differentiate it from the likes of Apple Pay. (As an aside, I think one payments processor that has built itself a barrier is PayPoint, with its network of terminals in shops for handling the payment of bills.)

Bargepole
The mobile payments market is set to soar in turnover in the next few years, and that is reflected in the growth pricing attached to shares in the candidates for success. But a couple of things conspire to make the smaller operators unattractive to me.

Firstly, I’m always minded of Warren Buffett’s observation that it is rarely the first movers who make it big in a new technological business. And in the payments business, I reckon the advantages lie very much with the big players who have the muscle to expand rapidly — and to invest in industry-leading cyber security.

Bouncing back nicely ...

Yes, retest of highs before too long...

Yesterday's minimal move higher reported in The Times and Telegraph as possible merger with World Pay. Bored traders perhaps.

Daily Telegraph:

Finally, mobile payments company Optimal Payments became the latest target of takeover chatter in the City. The stock ticked up 1.8pc to 340.5p as traders said Worldpay was a possible suitor

I'd prefer to see value added from Skrill and good growth before a takeover approach but can see how the enlarged group with US Skrill and the existing business is likely to be appealing to a suitor.

http://www.forbes.com/sites/thomasbrewster/2015/11/05/optimal-payments-hack-investigation/

The history behind the original hacking attempts.

Canaccord comment on the above article:
"The article describes how the author came across the data, his dealings with his source and his interactions with Optimal Payments. He comments on the sensitivity, amount and age of the data, how such data can potentially be used on the “dark web” and the risks to enterprises generally. The article provides many positive disclosures for Optimal Payments:
• The article indicates that data is related to attacks from 2009 and 2010. Optimal Payments previously stated that forensic audits indicated that the NETELLER data breach contained no evidence to suggest that the breach was material and, to the best of the company’s knowledge, no NETELLER customers suffered any financial losses as a result. Similarly, to the best of the company’s knowledge, no Moneybookers’ customers suffered any financial losses as a result of the historic breach.
• The article did not contradict Optimal’s account that the Neteller breach involved only a marketing database with no financial information. Optimal indicates in the article that the Moneybookers breach involved a production database with encrypted passwords and card numbers, but that the forensic investigator believed the likelihood of a successful transfer of the data to the attacker was low.
• The author was impressed with Optimal Payments’ professionalism and openness. He said the company was “refreshingly transparent”, “responded quickly” and praised its “exemplary reception of ethical disclosure”. Optimal Payments reported the breaches in 2009 & 2010 to the FSA (now the FCA) and were the subject of independent forensic investigations from major accounting firms.
The article alleges that the leaked databases contained 4.5m and 3.6m records from Moneybookers (Skrill) and Neteller, respectively. Optimal has commenced an investigation into the matter and the veracity of the allegations (bought to the company by the journalist at Forbes), and has informed both the Information Commissioner and the FCA. Shares continue to trade at a discount to peer average (11.7x versus 13.5x FY2 EV/ EBITDA), despite strong growth and potential for earnings out performance, driven by acquisition cost synergies, combined Skrill/ Neteller margin improvement and continued strong growth against conservative market expectations."

Thanks Harrycat.

Looks like there are no significant shorts on this now either ..