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

Going well 3m, 12% today.

Been a long hard wait this one dc - a lot of dead money for a lot of years as I have said. Just keeping my fingers and toes crossed.

Its climbed 34p odd this year , so lets hope it gives you the other 40p. Sounds like you need another 30%, a few more rises will get you there.

Oh! I cannot wait - will definitely be a holiday without the other odd swingers. Will be more alert haha!!!!!

The very best of luck 3m.

Gee wizz, I think I out of all Gods Chidren deserve it. Many thanks.

Moving up very nicely for me. When the Yanks state by state allow online ganbling it maybe like a contract award each time so looking for big gains.

Relevant here.....

Bwin jumps 15% on hope of licence for online gaming in New JerseyState governor opens the way for internet casinos and online poker to be licensed
Over the yeas online gaming companies have faced numerous problems, legal and otherwise, in the potentially huge US market. But things could be about to change.

Bwin.party digital, the world's largest listed onling gaming group, has jumped 17.6p to 134.3p, a 15% rise which makes it the best performer in the FTSE 250, on hopes it could get a licence in New Jersey.

It has a joint venture with Boyd Gaming in the state, and on Thursday its governor said that he would sign a loaw allowing the licensing of internet casinos and poker, subject to some amendments. Analysts at Numis said:


The successful start of licensed online gambling in the state is likely in our view to have two positive effects. First, to encourage some other states to license online gambling. Second, to encourage Federal legislators, even those who oppose gambling, to pass Federal legislation in an attempt to control the development of the US market.


The New Jersey news has given a lift to other companies involved in online gaming. Playtech has put on 23.3p to 513p while 888 is up 12p to 127.75p, Ladbrokes has been lifted 2.9p to 220.8p and William Hill has risen 7.6p to 402.5p

http://www.guardian.co.uk/business/marketforceslive/2013/feb/08/bwin-licence-online-gaming-new-jersey

Cannot wait, been a lot of years.

If any one remembers NETELLER as it was - when it flew it flew. Just hope OPAY as it it now will accomplish the same. gl to all holders and even more gl to those who were in these years ago with over the £5 per share.

Yep I remember neteller my god it did fly aswel. Lost 20% off top cos thought it had already made me a fortune when I flogged it.

Sugar plum fairies - what is happening - long may it continue.

Yes indeed. This market is scary.

A long time waiting for me as we know - just hope some good news in on the way.

Good to see this head North for you 3m.

Thanks dc. Not funny when there is a few thousands of pounds sitting doing nothing as well know.

I know the feeling 3m. Its not your cash till you press sell. You deserve this one.

Oh! dear thought it was too good to be true!!!

Very volatile. Sticking in though.

A buy rating in Shares mag today 3m. Expectations that New Jersey could next month legalise online gambling. A prime candidate for earnings upgrades.