Printable versionPlanet Payment Announces Preliminary 2009 Annual Results
03/24/10Total Revenue Increases 31%, Gross Profit Up 42%, Positive Adjusted EBITDA for 2009
Planet Payment, Inc. (UK: LSE:AIM: PPT and PPTR; USA: OTCQX: PLPM), a leading international payment and data processor, today announced its preliminary results for the year ended December 31, 2009 and quarterly results for the three month period ended December 31, 2009. During both periods, the Company delivered solid results in a challenging economic climate:
2009 Financial Highlights
• Total revenue increased 31% to $47.3m (2008: $36.2m).
• Gross Profit increased 42% to $16.3m (2008: $11.5m).
• Cash Operating expenses declined 11%, to $15.8m (2008: $17.8m).
• Adjusted EBITDA of $0.5m, a substantial improvement over the 2008 loss of $6.3m. See Table 1 in Exhibit 1 for reconciliation of Net loss to Adjusted EBITDA.
• Net loss improved 63% to ($4.0m) (2008 loss: $11.0m).
Fourth Quarter 2009 Financial Highlights
• Total revenue increased 21% to $14.2m (Q4 2008: $11.8m).
• Gross Profit grew 26% to $4.7m (Q4 2008: $3.7m).
• Cash Operating expenses declined 3% to $4.2m (Q4 2008: $4.3m).
• Adjusted EBITDA improved 183% to $0.5m (Q4 2008 loss: $0.6m). See Table 1 in Exhibit 1 for reconciliation of net loss to Adjusted EBITDA.
• Net loss improved 59% to ($0.9m) (Q4 2008 loss: $2.1m).
2009 Operational Highlights
• Broadened international reach:
• India—launched multicurrency processing services.
• Canada—commenced domestic and multi-currency processing services in support of a new multi-card acquirer.
• Active merchant locations grew 23% to over 10,000.
• Expanded relationships, entering into agreements with:
• JCB, to provide back-end settlement and clearing processing for all merchants acquired directly by JCB in Hong Kong and multi-currency processing and acquiring services for North American merchants;
• Agricultural Bank of China to provide our multicurrency solutions through divisions in an additional eight provinces and cities.
• Total settled transaction volume increased 38% to $2.2 billion (2008: $1.5billion).
Current Trading Highlights – First Quarter 2010
• Total revenue projected to increase approximately 25% to over $13m (Q1 2009: $10m)
• Network International, the largest acquirer in the Middle East and North Africa, signed agreement with the Company and has begun marketing Planet Payment’s Pay in Your Currency™ service to merchants in the United Arab Emirates
• Preparing to launch multi-currency services in the Philippines in Q2 2010
Commenting on the results, Philip Beck, Chairman of Planet Payment, Inc., said:
“These results reflect the strength of our business model and the continued execution of our strategic objectives. We are pleased that Planet Payment has outperformed the market during this difficult economic climate. We continue to cross sell our existing and new innovative products to our acquiring institution customers and to their customers. We believe the Company is well positioned for further growth in 2010 as we continue to expand into new countries and are poised for the recovery in our existing markets.”
Additional analysis of the Company’s performance can be found in the Management Discussion and Analysis appended to this release. Copies of the Company’s Annual Report and Accounts for 2009 will be sent to shareholders in April together with the Notice of the 2010 Annual Meeting, which is to be held in June 2010 in New York. Copies of this announcement are available on the Company’s website at www.planetpayment.com. In accordance with the rules of the OTCQX market, the Company’s Annual Report for 2009, including its Audited Consolidated Financial Statements, as of and for the year ended December 31, 2009 have been posted on the OTCQX website at www.otcqx.com and 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.
Click here for the complete release.
Enquiries:
Planet Payment, Inc. www.planetpayment.com
Philip D. Beck, Chairman & CEO At Redleaf on March 24, 2010
Redleaf Communications Ltd (in the UK) planet@redleafpr.com
Emma Kane / Rebecca Sanders-Hewett/ Henry Columbine Tel: +44 20 7566 6700
Cubitt Jacobs & Prosek Communications (US PR)
Emily Cleary/ Thomas Rozycki
ecleary@cjpcom.com
Tel: +1 212 279 3115 x257
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 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. Our 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.
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. Implementation of some or all of the new services referred to is subject to regulatory, or other third party approvals. 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 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 commencing operations in new countries and regions of which Planet Payment is not fully aware at this time. See the Company’s Annual Report for 2009, 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.
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