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During the first half of 2012, the Company achieved the following operating results:
Our results reflect a 50% increase in active merchant locations over the last twelve months and growth of 23% and 25% in Consolidated Gross Billings and Gross Foreign Currency Mark-up respectively in the first half of 2012 compared to the same period in 2011. The growth in our financial results, however was muted by a number of factors. The challenging economic climate, which our merchants and their customers are facing, led to a decline in net revenue per merchant location. The increase in our operating costs compared to 2011 primarily reflects additions to technology and support personnel to invest in the growth of the business and future launches into new markets. Notwithstanding the economic climate, we believe that the growth in the key operating metrics of active merchant locations, Consolidated Gross Billings and Gross Foreign Currency Mark-up are indicative of the underlying strength of our business
During the first six months of 2012, we continued to expand our acquiring customer base, in particular announcing an agreement with China UnionPay to provide processing support for China UnionPay’s credit and debit cards on a worldwide basis. We also announced agreements with Citibank, Hong Kong and Macau, Citibank Philippines and Mashreq in UAE to provide our Pay in Your Currency service in those countries. In April 2012, the Company launched Pay in Your Currency for ATM service with Vantiv in the United States. During the period we launched a number of acquiring bank solutions, including Pay in Your Currency services with Global Payments, Canada, Mashreq, Citibank Philippines and Citibank Hong Kong. We also launched our MICROS Payment Gateway service with Banorte in Mexico. Planet Payment is currently working to implement and roll out additional acquiring bank, processor and merchant offerings. Together these customers represent a robust pipeline of new business for Planet Payment.
In May 2012, the Company announced the acquisition of Branded Payment Solutions Ltd (“BPS”), an Irish payments company based in Dublin. This acquisition expands the scope of Planet Payment’s global technology solutions. Planet Payment currently interfaces to the merchant’s point of sale through its proprietary, currency-neutral, payment processing technology platform, but does not provide applications on the point of sale. We believe that the acquisition of BPS will enable us to implement additional value-added solutions at a merchant’s point of sale.
The Company expects to see continuing growth in active merchant locations, during the remainder of 2012, from both existing customers and those that have recently implemented and launched services with Planet Payment. The Company intends to continue to invest in supporting new business, new markets implementations and new pipeline, although the benefit of these investments may only be realized in subsequent periods. The Company may continue to see slower growth in Consolidated Gross Billings and net revenue from existing customers, as a result of the current challenging economic environment. Based on these and other factors referenced above, the Company expects full year revenue growth comparable to the first half of 2012, and expects net income and Adjusted EBITDA for the 2012 year to be relatively flat compared to 2011, unless economic conditions improve.
Commenting on the results, Philip Beck, Chairman and CEO of Planet Payment said:
“During the first half of 2012, we continued to execute our strategy and invest in new business and markets, building a strong pipeline for the future. As demonstrated by our new customer launches, the market for our services remains strong as we continue to build our business.”
Additional breakdown on the Company’s performance can be found in the Management’s Discussion and Analysis of Financial Condition and Results of Operations appended to this release. In accordance with the rules of the OTCQX market, the Company's Half-yearly Report, including its Consolidated Condensed Financial Statements (unaudited), as of June 30, 2012 and December 31, 2011and for the six months ended June 30, 2012 and 2011 have been posted on the OTCQX website at www.otcqx.com and on the Company’s website at www.planetpayment.com.
Planet Payment, Inc.
Robert Cox (CFO)
Tel: + 1 516 670 3200
Redleaf Polhill (UK PR for Planet Payment)
Emma Kane / Henry Columbine / Marlena Ong
Tel: +44 20 7566 6720
ICR (US PR for Planet Payment)
Don Duffy / Dara Dierks
Tel: +1 646-277-1212
Canaccord Genuity Ltd (UK) (Nomad for Planet Payment)
Simon Bridges / Andrew Chubb
Tel: +44 20 7523 8000
Canaccord Genuity, Inc. (US) (DAD for Planet Payment)
Tel: +1 617-371-3900
Forward-Looking Statements. Information contained in this announcement may include ‘forward-looking statements’. All statements other than statements of historical facts included herein, including, without limitation, those regarding the financial position, business strategy, plans and objectives of management for future operations of both Planet Payment and its business partners, are forward-looking statements. Such forward-looking statements are based on a number of assumptions regarding Planet Payment’s present and future business strategies, and the environment in which Planet Payment expects to operate in future, which assumptions may or may not be fulfilled in practice. Actual results may vary materially from the results anticipated by these forward-looking statements as a result of a variety of risk factors, including, regulatory changes and changes in card association regulations and practices; changes in domestic and global economic conditions and changes in volume of international travel and commerce, the impact of the BPS acquisition and others. See the Company’s Half-yearly Report for the period, filed at www.otcqx.com, for other risk factors which investors should consider. These forward-looking statements speak only as to the date of this announcement and cannot be relied upon as a guide to future performance. Planet Payment expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this announcement to reflect any changes in its expectations with regard thereto or any change in events, conditions or circumstances on which any statement is based.