10th Sep 2014 08:08
LONDON (Alliance News) - Online payments provider Optimal Payments PLC Wednesday reported a jump in first-half pretax profit and said that robust trading since the end of that period means it now believes its full-year results will now come in ahead of its expectations.
In a statement, the AIM-listed shirt sponsor of Crystal Palace Football Club, said it made a USD27.5 million pretax profit in the six months ended June 30, compared with USD15.5 million in the corresponding period a year prior.
Revenue increased by 34% to USD159.1 million, boosted by growth and improved gross margin at digital wallet business NETELLER. It also reported revenue at secure gateway and merchant account business NETBANX, with the company highlighting Asia as a particular area of growth.
Optimal Payments has been growing its presence in the US, and in July completed the acquisition of payment processing companies Meritus Payment Solutions and Global Merchant Advisors Inc to that end.
"The acquisitions of Meritus and GMA in July satisfy our previously stated objectives to strengthen our presence in the US market and provides Optimal Payments with a springboard for strong North American growth," Joel Leonoff, president and chief executive, said in a statement.
"The attainment of principal membership status with Visa and MasterCard in Europe should help fortify our NETBANX business throughout Europe based on more competitive rates and a stronger offering," Leonoff added.
However, the company cautioned that "some regulatory related uncertainty" persists, as the regulated online gambling market continues to emerge in US states.
"Our European version of NETELLER continues to demonstrate impressive growth while our US NETELLER release is gaining traction and is extremely well positioned to leverage off new US markets regulating and re-opening the doors for US based online gaming," Leonoff said.
Optimal Payments shares were Wednesday quoted up 2.4% at 484.75 pence. The stock touched an intraday high of 510.00p earlier Wednesday morning, just below its 52-week peak of 519.50p.
By Samuel Agini; [email protected]; @samuelagini
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