Paysafe Reports H1 2016 Results After Skrill Acquisition

Paysafe has reported solid first-half results more than doubling revenue and EBITDA figures.

UK listed payment solutions provider Paysafe Group plc which is traded on the London Stock Exchange (LON:LSE) under the ticker PAYS, today reported its unaudited preliminary results for the 6 months ended 30 June 2016, revealing strong growth for the period.

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Financial Highlights

The company has reported that its H1 2016 revenue increased as much as 118 percent to $487 million compared with $223 million in H1 2015.

Adjusted H1 2016 EBITDA increased by 189 percent to $144 million compared with $50 million in H1 2015, reflecting the acquisition of Skrill and increasing profitability. Adjusted H1 2016 EBITDA margin was 29.6 percent compared with 22.4 percent in H1 2015.

I am delighted with the group’s first half results. We have again delivered very strong growth.

Paysafe also reported that the integration of Skrill is complete and that it expects to recognise in excess of the $40 million synergies envisaged at the time of the transaction over FY 2016.

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Operational Highlights

Paysafe has also announced new partner collaborations, payment product enhancements and markets entered during H1 2016 across Payment Processing, Digital Wallets and Prepaid.

MeritCard, a merchant acquiring business, was acquired in February 2016 and integrated into the group’s payment processing division. Paysafe is continuing to assess further acquisition opportunities in the payments sector.

In addition, following the integration of Skrill into the group ahead of schedule, the development of a next-generation global data platform to deliver enhanced real-time insights and analytics and a global merchant onboarding capability have commenced earlier than previously anticipated.

Current Trading and Outlook

Overall, the positive momentum in the business has continued during July 2016 and as a result of the exceptional half year results, the group has announced a further revenue upgrade for FY 2016 over that given on 25 May 2016, which was reported by Finance Magnates.

Full year revenue is expected to be in the range of $970 million to $990 million, against the current internally compiled consensus of $960 million.

The group expects to maintain the first half EBITDA margin of 29.6 percent in the second half.  As such, adjusted EBITDA for FY 2016 is expected to be between $287 million and $293 million.

Commenting on the results, Paysafe President and Chief Executive Officer Joel Leonoff said: “I am delighted with the group’s first half results. We have again delivered very strong growth as our increasingly diversified payments business expands further across pay-before, pay-now and pay-later products and services. With the exceptional performance delivered in the first half, as well as continued strong trading in the early part of the second half, management and the Board are confident in the group’s prospects for the full year.”

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