www.planetpayment.com
Planet Payment [LSE:AIM:PPT and PPTR; OTCQX:PLPM] is a leading international payment and data processor, providing banks and their merchants with innovative solutions to accept, process and reconcile payments, anytime, anywhere and in any currency.
Its customer base of more than 40 acquiring banks and processors stretches from North America, to the Middle East, to Asia Pacific, including China, Hong Kong, Macau, Taiwan, Malaysia and India. Planet Payment is headquartered in New York and has offices in Atlanta, Beijing, Bermuda, Delaware, London, Hong Kong, Shanghai and Singapore. Visit www.planetpayment.com for more information on the Company and its services.
Planet Payment shares suspended as it considers new accounting presentation ahead of full US listing
Multi-currency payment processing firm Planet Payment (LON:PPT) this morning explained that it was considering a change in the way it presents revenues in its accounts, as it prepares its full US listing, consequently the group interim results will be delayed.
The shares have been suspended on AIM today in accordance with the exchange’s listing rules, however the US OTC stock can still be traded on the ‘OTC Pink No Information’ tier.
Meanwhile, the firm revealed that it continued to grow transaction volumes across its platform in the six months ended June 30.
It said that it processed $1.057 billion dollars of multi-currency transactions, a 79 per cent increase from the $592.2 million processed in the first half of last year. Similarly the total number of multi-currency transactions increased 62 per cent to around 4.9 million, compared to the 3 million transactions processed.
Much of this growth is down to the fact that Planet Payment’s services are being offered through more merchant locations.
It said that multi-currency active merchant locations increased by 66 per cent to 14,345, compared with 8,639 in the same period of last year. While total active merchant locations is more than double what it was in the first half of last year at 22,825.
As at June 30 Planet Payment said it had US$7.1 million in cash and cash equivalents.
Explaining the potential changes to the accounting presentation, which it is considering, Planet Payment said: “The company has historically reported revenue, as total billings, inclusive of revenue share amounts paid to acquiring banks and processors, interchange, assessments and other fees paid by the company in connection with processing services.
“The revenue share amount paid to acquiring banks and processors, interchange, assessments and other fees have been shown as a cost of revenue. The company is considering whether to present revenue net of certain of the cost of revenue items.”
While the group does not expect a change in revenue and cost of revenue presentation to any impact on the company's net income or loss – or the consolidated balance sheets, consolidated statements of cash flow and consolidated statements of stockholders' equity for any period - it is possible that the company will restate financial statements for certain prior periods, which may give rise to other issues that impact the consolidated financial statements.
It did add though, that: “The company is not currently aware of any such other issues, which would have a material impact on its operating results, nor on the financial condition of the company.”
The examination of its accounting presentation is being carried out in consultation with its independent registered public accountant, Deloitte & Touche LLP.
