Planet Payment reveals strong first half performance; shares resume trading on AIM

Planet Payment (LON:PPT, LON:PPTR and OTCQX:PLPM) today revealed a strong operating performance for the first half of 2011.

It explained last month that following discussions with its advisor Deloitte, the group’s interim results had been delayed as it made changes to the way it presents revenues in its accounts ahead of the groups IPO into US capital markets.

Today the group released the eagerly anticipated results for the six months ended June 30, which showed a 47 per cent uplift in net revenue to US$19.9 million.

Following the announcement, Planet Payment’s shares have resumed trading on AIM after the temporary suspension.

Planet Payment said that its interim net income had swung into positive ground, reaching US$1 million from a US$2.3 million loss in the first half of last year. Adjusted earnings (EBITDA) came in at US$2.6 million, compared to a US$400,000 loss a year ago.

The company now reports revenues net of the gross foreign currency mark-up, which is shared between the company, acquirers and their merchants.  

It said that ‘consolidated gross billings’ – a financial metric that includes gross foreign currency mark-up and revenues earned and reported on payment processing services – increased by 70 per cent compared to the comparative period of last year, to US$47 million.

Meanwhile, the ‘gross foreign currency mark-up' increased 86 per cent to US$40.2 million.

Put in more straight forward terms, Planet Payment’s progress can be seen through the continued roll-out of its payment processing services which are being used by more and more merchants in an increasing number of territories.

The number of active merchants using Planet Payment’s multi-currency payment processing service increased by 66 per cent to 14,345, and just over US$1 billion was settled through the platform.

This increase in the take up of its product is the main driver behind the group’s strong revenue growth.

“Planet Payment's customers have continued to roll out our multi-currency processing solutions as reflected by a 66 per cent increase in active multi-currency merchant locations,” the company said in a stock exchange statement.

“During the first half of 2011 the total number of active merchant locations continued to grow, increasing by approximately 100 per cent during the period.

“During the first half of 2011, the company continued to expand its acquiring customer base in both existing and new markets, in particular announcing agreements with Global Payments to provide multi-currency services in the United States and Canada, complementing the existing agreements in the Asia Pacific region.”

Then in March, Planet Payment signed a deal with Vantiv – formerly known as Fifth Third Processing Solutions – to expand its offering through the future roll out of the ‘Pay in Your Currency’ service on ATMs throughout the United States.

Later, in May, Planet Payment launched the MICROS Payment Gateway, which it operates under a worldwide license from MICROS Systems, to support payment services for merchants in the hospitality and retail industries.

Additionally the company was told that two claims under its patent applications have been found to be ‘patentable’ in Singapore and Australia, and it expects patents in those countries to be granted shortly – Planet Payment already has patents in the United States and in other countries. 

On a corporate from the firm has also been strengthened. In April investor holding US$9 million in convertible notes switched the debt into equity, taking just over 4 million new shares in the company.

Meanwhile the preparations continue for the group’s full listing in the United States, in which US$75 million worth of stock will be sold to new investors – from a mixture of new and existing share capital.