Planet Payment’s first quarter results passed muster, according to Daniel Stewart & Co analyst James Hollins, who reckons the remainder of the year should see a marked improvement in performance.
The payment processor’s revenues were up 28 percent at US$13.2 million and some US$2.9 million ahead of the broker’s own forecasts.
A rise in costs by US$800,000 to US$4.7 million meant PP’s operating loss expanded to US$700,000 for the first three months from US$300,000 a year earlier. But Hollins is predicting operating profit of US$4.7 million for the year and $10.3 million in 2011. A build-out in new services will take PP into United Arab Emirates, the Philippines and South Africa.
‘Although the outlook for consumer sentiment is not strongly positive for the short-term, Planet Payment’s like-for-like volumes suggest an improved performance and a more benign outlook after such a torrid time in the past 18 months for international travel and consumer expenditure,’ Hollins said in a note to clients.