Paysafe Group, a UK-based payments provider and money transfer service and solutions provider, today issued a trading update for the year ended 31 December 2016, as per a company statement.
The group has reported continued strong momentum during H2 2016 and expects to exceed the $1 billion revenue milestone in FY 2016, ahead of the upper end of the guidance range and current market expectations.
FY 2016 adjusted EBITDA is expected to reach $300 million for the first time, with implied adjusted EBITDA as a percentage of revenue marginally ahead of expectations.
The group highlighted that its strong business performance throughout the year led to guidance being raised twice during 2016, resulting in a c.$110 million (13 percent) upgrade to revenue expectations over the last 12 months from $868 million to a range of $970-990 million.
Adjusted EBITDA expectations were also raised by c.$40m (15 percent) from $252 million to a range of $287-293 million. This represented an adjusted EBITDA margin expectation of 29.6 percent compared to 24.9 percent delivered in FY 2015.
The group also continues to demonstrate strong cash conversion, enabling it to capitalise on market conditions with an inaugural share buy-back programme announced in December, without compromising its pursuit of M&A opportunities.
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Given the strong revenue performance in H2 2016, Paysafe is confident about the group’s outlook for FY 2017 and expects to achieve low double-digit organic revenue growth from a base of 2016’s record performance, while expecting to at least maintain adjusted EBITDA margins.
H2 2016 Operational Highlights
As a result of the successful completion of the Skrill business integration five months ahead of schedule, the group has begun integrating its comprehensive product suite into a single, scalable payment platform and ecosystem. This includes new and centralised data, analytics, reconciliation, compliance and risk management tools. New platform functionality will be delivered in a modular approach throughout FY 2017.
We have delivered another excellent financial performance and expect to surpass $1 billion in revenue.
The group also launched its new developer portal and completed the acquisition of Income Access in August 2016, following the acquisition of MeritCard in February 2016.
Paysafe has ended the year with enhanced operations, processes, products and technology that position the business strongly for growth in FY 2017 and beyond.
Paysafe President and Chief Executive Officer Joel Leonoff commented: “We have delivered another excellent financial performance and expect to surpass $1 billion in revenue, an impressive milestone of which we are extremely proud. Our ongoing momentum underpins our confidence in our growth prospects for 2017.”
Paysafe expects to announce its final results for the year to 31 December 2016 on 7 March 2016.