Printable versionPlanet Payment Announces Preliminary 2008 Annual Results
03/31/09TOTAL REVENUE INCREASES 111%; GROSS PROFIT INCREASES 82%
Planet Payment, Inc. (UK: LSE:AIM: PPT and PPTR; USA: OTCQX: PLPM), a leading international multi-currency payment and data processor, today announces its preliminary annual results for the twelve month period ended 31 December 2008.
2008 Financial Highlights
• Total revenue increased 111% to $36.2m (2007: $17.2m).
• Gross Profit increased 82% to $11.5m (2007: $6.3m).
• Total settled transaction volume of over $1.5 billion, up 236% (2007: $465m)
• Operating costs as a percentage of revenue decreased to 60% (2007: 106%).
• Adjusted EBITDA loss for the year improved by 24% to $6.3m, (2007: $8.3m excluding one time revenue recognition)
• Net loss for the year improved 18% to $10.98m (2007: $13.4m)
Fourth Quarter 2008 Financial Highlights
• Total revenue grew 74% to $11.8m (Q4 2007: $6.8m).
• Total revenue was up 16% over third quarter 2008 (Q3 2008: $10.2m), led by 24% growth in multi-currency processing revenue to $7.6m (Q3 2008: $6.1m)
2008 Operational Highlights
• Thirteen new banking channels activated across Greater China, Malaysia, Taiwan and the United States increasing the Company’s network to more than twenty-five supported processors and banks
• Active merchant locations grew 380% to 7,946 in 2008 (2007: 1,655 locations)
• Assets of the former iPAY e-commerce business acquired, technology platform successfully integrated and Multi-Currency Pricing services launched for e-commerce merchants
• Launched Pay In Your Currency Service at Dillard’s, Inc. throughout their 300 retail locations in the United States
Current Trading Highlights – First Quarter 2009
• Total revenue is estimated to increase in excess of 90% to more than $10m, as compared to first quarter 2008.
Commenting on the results, Philip Beck, Chairman of Planet Payment, Inc., said:
“Our strong 2008 results reflect that our business continues to grow, notwithstanding the current economic climate. Today, more than ever, businesses are seeking to increase revenue and improve operational efficiencies. Planet Payment offers its customers processing solutions that are designed to increase efficiency, open new sales channels and maximize revenues. The Company looks forward to continued growth in 2009 and achieving near-term profitability”.
Copies of the Company’s Annual Report and Accounts for 2008 will be sent to shareholders in May together with the Notice of the 2009 Annual Meeting, which is to be held on Friday, June 5, 2009 in New York. Copies of this announcement are available on the Company’s website at www.planetpayment.com. Copies of the Annual Report and Accounts will also be available on request, through the Annual Reports service and on the Company’s website upon publication.
Enquiries:
Planet Payment, Inc. www.planetpayment.com
Philip D. Beck, Chairman & CEO At Redleaf on March 31, 2009
Redleaf Communications Ltd (in the UK) planet@redleafpr.com
Emma Kane / Samantha Robbins / Rebecca Sanders-Hewett/ Henry Columbine Tel: +44 20 7566 6728
ICR, Inc. (in the USA)
Brian Prenoveau, CFA / Ashley Ammon MacFarlane Tel: +1 203 682 8200
Canaccord Adams Limited (UK) (Nomad for Planet Payment)
Mark Williams Tel +44 20 7050 6500
Canaccord Adams Limited (UK) (DAD for Planet Payment)
Andy Viles Tel: +1 617-371-3900
About Planet Payment®
• Planet Payment’s Common shares trade in the UK on AIM under the symbols PPT for unrestricted Common shares and PPTR for Reg S Common shares and in the United States on the OTCQX under the symbol PLPM.
• Planet Payment enables processors, acquiring banks and their merchants to accept, process and reconcile credit card transactions in multiple currencies, allowing cardholders to view prices and settle transactions in their native currency. The Pay in Your Currency service is a component of Planet Payment’s suite of multi-currency processing solutions, which include a multi-currency pricing e-commerce service and a Dynamic Currency Conversion service. Planet Payment’s BuyVoice™, a mobile payment and commerce solution, allows merchants to accept payments and sell product to customers using any mobile or landline phone. With the iPAY™ gateway, Planet Payment also offers comprehensive Internet processing solutions for credit card and electronic check payments.
• Planet Payment is headquartered in New York and has offices in Atlanta, Beijing, Bermuda, Delaware, London, Hong Kong, Shanghai and Singapore.
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 the business, which was the subject of the iPAY acquisition (including development plans and objectives relating to Planet Payment’s and such acquired business) are forward-looking statements. Such forward-looking statements are based on a number of assumptions regarding Planet Payment’s present and future business strategies, the assets acquired, contracts assumed and personnel hired 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 the risk that implementation, adoption and offering of the service by processors, acquirers, merchants and others may take longer than anticipated, or may not occur at all, regulatory changes, particularly in China and changes in card association regulations and practices; general economic risk and volume of international travel and commerce and others. Additional risks may arise with respect to the acquired assets and assumed contracts of which Planet Payment is not fully aware at this time. See the Company’s Annual Report filed with the OTCQX 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.
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