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

Don't worry, the fall is only due to the issue of the new shares.
Once the Rights Issue is complete the share price will recover. As you haven't sold, you will soon receive a message from your broker asking if you wish to buy your allocation of the new shares at a certain price (which should be around £1.66).
Don't forget to look at the big picture. You will have more shares at a much cheaper price which will give you a better average price over your complete holding.
Patience is required now as the process is completed, though you will need to decide if you want to buy the new shares or not at some point soon.

Thanks harrycat but my logic is if I had sold more at £5.00 odd I would have had the spare cash to invest in the rights issue!! I will sit patiently once again afte 9 long years another couple won't make much difference. Oh Happy Days. I will probably be pushing up the daisies by the time they recover again. Good Luck.

Funds ready and taking up all my rights. Instruction given.

3 monkies, I hope not! I wouldn't be surprised to see this double (and I'm not talking years).

Making up my mind, I do feel that you may be correct in (not talking years).

It's a bit of a coup in my opinion that OPAY has managed to acquire Skrill. Helps to de-risk OPAY and payment systems - gambling/retail/smartphone etc are only going to explode which is why I've gathered the funds and in for 100%. Also for this reason I've been adding SCH which is highly profitable and in a similar, though not identical space.

Am still waiting for my broker to let me know!!! RI allocation not yet appeared on my account .....but am happy to buy my allocation and wait a while.

Hargreaves Lansdown seemed on the ball and easy process to accept full or partial rights uptake. Harrycat, you going for the full allocation? What are your personal views on this one? Maybe I'm being too optimistic but having held some time I still see significant upside...

Yes, I will take up all of the RI and will then have a look to see what my average price is. I can't see myself hanging on too long after that, but it all depends on where the sp goes, broker targets & reports and no more scare stories from the CEO who was dumping stock in an (allegedly) improper way.

Quite agree - it will become my largest holding across my portfolios so assuming the price continues to head northwards I'll have to take some money off the table at some point. Trouble is, it could run...

My notification has arrived at last:
"RIGHTS ISSUE
Optimal Payments plc has announced a Rights Issue. You have been allotted 5 Rights for every 3 Shares held as at 17 April 2015 and every 1 Right may be exchanged for 1 New Share at GBP1.66 per Share.
If you would like to accept the offer please notify us in writing by secure message or letter no later than 5pm on 24 April 2015.
Payment of the total cost specified will be collected from your account; please ensure you have sufficient cleared funds available to cover the amount due.
Please note that the above information only provides summary details of this corporate action and the expected timetable announced by the Company. In deciding whether or not to participate, it is your responsibility to ensure that you are familiar with all of the terms etc....etc...."

Glad this is heading back up as I don't like all the cash sitting there waiting.

3m.....have you decided to buy some of your Rights?.......or have you got enough OPAY stock already?

Yes harrycat I have just pressed the button to take all of my rights. Not moved the cash over yet as there is still time to do so. I cannot work out whether I am completely mental or not. I only paid £180 something for my original holding. Nice to see them finishing in the blue region tonight.

Sounds as though you are nicely in the money and living the champagne lifestyle 3m!
Lets hope the sp bounces back up to the 500p level once the RI is completed!

I wish harrycat, once the RI is completed I would like to think I would be nicely in the money and perhaps bathing in champagne. I have never been so lucky - a huge gamble for me at my time of life.

Money has now been taken from my account so am fully subscribed to RI.
Next:
 1st May – latest time to accept rights issue.
 5th May – announcement of results of rights issue; commencement of dealing in new shares, fully paid

It hasn't gone out of mine yet harrycat - I was told that there weren't any dealing charges is that correct? So be it I do it on line but I rang the Halifax and that is what they said.

Hargreaves is now showing as rights paid and showing values now...

There are not any dealing charges. You are correct 3m.
Don't forget though, that you cannot execute the trade yourself. You have to instruct your broker to carry out the purchase.