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

Whats official Payments go to do with OPAY????.

Seems to be some confusion here.

Article from Tip Sheet SCSW issued 2 weeks ago.


Skrill bid could trigger consolidation.

Optimal Repayments which reports on the 16th September, looks a big winner in the making. Back in April, we noted Skrill was about to fall under the hammer and this months bid from CVC is seen as a catalyst that could put other payment system providers in the frame in a year when 14 US States introduce online gaming.

Back long again.

Little birdy tells me a bolt on is imminent.

Interesting read.........

http://moneyweek.com/two-great-british-internet-businesses-invest-now/

Bring it on that is all I can say GF. Just hope they go up and up - lots more work to do around my house and need the dosh. Trust you are well. I would be so happy if these went to where they should be.

Good to see you posting 3M.

Yep would be great to see 300p pretty quick and then onto a fiver.

Will soon be acquiring a European bolt on so should get a lot more work from Europe plus all the new US States.

I also hear CEAZERS will be using the wallet, so we should be quids in, in time.

After waiting 8 yrs I think I have time - particularly having had 4 stents hahaha!!!

Dont worry we'lhave loads and loads of dosh.

Need a wheel barrow to move it, make that a white van......no a lorry.he he.

Like your sense of humour - The truth is, I firmly believe this is going back to where it should be. I don't ramp as I don't know how to but this was as you are aware a wonderful share.

Indeed indeed.

Hello GF
My original target for OPAY was to regain the 276 and then see if it pushed on from there! What is your target price? I tend to top slice half when a target is reached. I can quite easily see these getting to 320 in the near future.
Your thoughts appreciated!
David

David Hi, it all depends on this silly situation in the US over the debt ceiling.

I dont think anyone in the world knows whats going to happen if they default.

Ill report back here over next 2 days when we know whats what.

It really makes me mad when Ive worked so hard to seek out undervalued stocks and then see derd ignorant politicians take my gains away from me.

cheers GF, spitting mad.

Good to see you have calmed down over the debt ceiling gf, you seemed to be pressing the panic button a few weeks ago. :-)

Shiould be on for a solid start tomorrow or should I say in the opening.

Hi GF
I agree re US politicians! They ruined overseas strong online betting companies but the underlying motives were self protection. I do not think history will repeat itself as their betting industry has caught up a little.
Thanks for your reply and I shall top up if there is a small pull back!
David

David Hi, for many years I have researched this company and the online gambling growth fall and growth again.

In part it was due to my fellow enemy (now good freind) Evil Knevil .......Simon Cawkwell where we had an ongoing battle going on the T1ps.com web site B/Board. It was over the online company Sporting Bet.

Amazing how much you learn with a squable like this over a number of years.

I and he can now look back and both agree that it was the US Mafia who didnt want world globalisation eating at their US onland gambling casino business.

The goal posts have moved now that they have their hands in the pie and are behind a lot of the US online gaming gambling companys AND WILL increase their stake.

Their is massive GROWTH in this area.

Me being a peasant hasn't even researched it for years but it stood to reason when the US lift the ban things will progress which it has not done as yet.. Netellar was a notorious company. Still is and will come back. Too much going for it not to.

Your no peasant.

300p on the way fingers crossed.

Cheers GF.

Up she goes!!!!! for now!!!!!