5th Feb 2019 09:38
LONDON (Alliance News) - Takeover target Earthport PLC on Tuesday said it expects to report a 4.5% increase in interim revenue as its core business registered double-digit growth.
For the six months to the end of December, the international payments firm is guiding for revenue of GBP16.1 million, from GBP15.1 million a year prior.
Core payment business revenue, comprising payment transaction and foreign exchange revenue, is expected to be 18% higher at GBP11.8 million reflecting higher transaction volumes and changes in both pricing and mix of business, the company said.
In the six months, average payment business transaction volumes reached more than 1 million per month, with December as the "highest ever recorded for the company". The value of payments processed by Earthport increased 12% to GBP5.8 billion.
During the half-year period, Earthport incurred GBP3.0 million in restructuring costs.
Earthport is currently under offer from Mastercard Inc. Mastercard is to pay 33 pence per Earthport share, valuing the company at GBP233 million.
Prior to the Mastercard offer, the company had accepted a 30p per share proposal by Visa, valuing Earthport at GBP198 million.
Last week, Earthport said around 12% of its shareholders had signalled they would be accepting the Mastercard offer.
Earthport shares were trading down 0.7% at 37.73p on Tuesday.
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