SafeCharge Publishes Pre-Close Trading Update Ahead of FY2016 Results

The group has reported record transaction processing volumes and renvenues coupled with key Tier 1 customer wins.

SafeCharge, a provider of payments services, technologies and risk management solutions, today published a pre-close trading update ahead of announcing its results for the year ended 31 December 2016.

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The group has reported that it generated record transaction processing volumes and revenues during Q4 after winning Tier 1 customers including PaddyPower Betfair, Sun Bingo, Sisal and Nayax which were launched in the second half. The group’s outstanding performance followed a quieter Q3.

EBITDA

SafeCharge also expects to report 2016 Adjusted EBITDA in the range of US$33 – US$34 million (US$34.5 – US$35.5 million on a constant currency basis).

Expectations are that the full year dividend will total 75 percent of adjusted EBITDA for the period and that the group closed the year with over US$124 million of cash and short term investments and that it continues to be debt-free.

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During 2016 the group committed substantial resources to its business in response to anticipate changes in its regulatory and commercial environment, evolving customer requirements and its strategy to develop sustainable high quality, low risk revenues from a diversified customer base.

Opportunities

SafeCharge’s businesses are already seeing the benefits of its strategy and investment demonstrated by further Tier 1 wins in core sectors, new and growing customers in Romania, Italy and Portugal and the Group’s first card-present customers driving substantial daily transaction volumes through SafeCharge’s payments and acquiring platforms.

SafeCharge’s Chief Executive, David Avgi, commented: “At the same time as achieving a strong financial performance, including paying substantial dividends to shareholders, we have maintained an acute awareness of what it will take to continue being successful as our markets evolve and customer needs change. I am excited by the challenges and valuable opportunities ahead of us and believe that we are ideally positioned to sustainably grow the business.”

SafeCharge added that it is confident that its focus on higher quality earnings from its healthy pipeline will yield continued revenue growth during 2017, building profitable momentum into 2018.

  

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