LONDON, MONTREAL and NEW YORK, Jan. 14, 2015 /CNW/ - Optimal Payments Plc (LSE AIM: OPAY, "Optimal Payments" or the "Group") announces its trading update for the year ended 31 December 2014 ahead of its full year results on 23 March 2015.
- The Group expects revenue and EBITDA for 2014 will be in line with market expectations, with reported revenue increasing 44% to at least $365 million (2013: $253.4 million) and EBITDA increasing 65% to at least $86 million (2013: $52.2 million).
- Normalised profit after tax(1) for 2014 is expected to be materially ahead of market expectations, principally due to an effective tax rate which is lower than consensus as a result of historical tax losses and a mix of revenues weighted towards operations conducted in lower tax jurisdictions.
- The NETELLER Stored Value business performed well, driven by underlying growth in customer metrics. The NETBANX Straight Through Processing business also performed strongly, particularly in Asia, incorporating revenues from Meritus and GMA following completion of the acquisitions on 23 July 2014.
Significant progress on important initiatives in 2014:
- Principal Membership with Visa Europe and MasterCard Europe achieved; Optimal Payments launched its acquiring service to merchants in the European Union in Q4 2014.
- NETELLER and Net+ products launched in the US in March 2014 with good adoption by online gambling merchants in the three states which have regulated online gambling. Larger US states, including California and Pennsylvania, are considering regulating online gambling in 2015. We have continued to develop our relationships with current and potential merchants and have forged successful partnerships in the rapidly developing area of fantasy sports.
- In November we announced the launch of a new card issuing services division to further enhance our end-to-end, complete payments value chain offer. We have also launched NETELLERGO!, a new flexible and easy-to-use online checkout page to provide ecommerce merchants with indemnified alternative payments.
- The integration of the Meritus and GMA businesses acquired in July 2014 is progressing well.
Commenting on today's trading update, Joel Leonoff, President & CEO, said:
"We are extremely pleased with the significant growth achieved in 2014. Having accomplished all of our stated goals during the year, both financial and non-financial, we have emerged with a strong foundation for 2015 and look forward to maintaining the momentum established in 2014. Our Executive Management Team has been strengthened through the addition of talented and experienced executives from Meritus and GMA and the recent appointment of Brian McArthur-Muscroft as CFO provides us with FTSE level experience and pedigree as well as great leadership, discipline and value for our growing business. We are excited about evolving opportunities associated with our Principal Membership status with Visa and MasterCard and are encouraged by the prospect of regulated online gambling in additional US States. Finally, we expect that our M&A strategy will continue to generate attractive opportunities for growth and diversification in the year ahead."
Normalised profit after tax is stated after adjusting for exceptional/acquisition costs, amortisation of acquired intangibles, share based payments and foreign exchange.
About Optimal Payments Plc
Optimal Payments is a global provider of online payment solutions, trusted by businesses and consumers in over 200 countries and territories to move and manage billions of dollars each year. Merchants use the NETBANX® platform and services to simplify how they accept credit and debit card, direct-from-bank, and alternative and local payments; and the NETELLER® service to increase revenues and capture new customers. Consumers use the multilingual and multicurrency NETELLER and Net+® Card stored-value offering to make secure and convenient payments. In July 2014, Optimal Payments acquired Meritus Payment Solutions and GMA as part of the company's commitment to strengthen its presence in the US market. Optimal Payments Plc is quoted on the London Stock Exchange's AIM, with a ticker symbol of OPAY. Subsidiary company Optimal Payments Ltd is authorised and regulated as an e-money issuer by the UK's Financial Conduct Authority (FRN: 900015).
SOURCE Optimal Payments Plc
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