Printable versionTrading Update
01/21/10TOTAL REVENUE INCREASES BY MORE THAN 30% TO OVER $47M
Continued Strong Growth Through Fourth Quarter 2009
Positive Adjusted EBITDA for the Year 2009
Planet Payment, Inc. (LSE: AIM: PPT and PPTR; OTCQX: PLPM), a leading international multi-currency payment and data processor, provides the following update on its trading for the fourth quarter and year ended 31 December 2009.
Management estimates that total revenue for the full year 2009 increased by more than 30% to over $47m (2008: $36.2m). This growth was led by new merchant deployments with processors and banking customers in the United States, Greater China, India Malaysia, and Taiwan. Revenue from core multi-currency processing services increased by more than 40% to over $33m (2008: $23.8m).
Management estimates that total revenue for the fourth quarter 2009 increased by approximately 19% to approximately $14m (2008: $11.8m), and by approximately 19% compared to the third quarter 2009. Revenue from core multi-currency processing services for the fourth quarter 2009 increased 44% to approximately $11m (2008: $7.6m), and by nearly 29% compared to the third quarter 2009.
The Company also estimates that it has achieved positive adjusted EBITDA for the third consecutive quarter and expects to show positive adjusted EBITDA for the full year in 2009. (Adjusted EBITDA excludes interest, taxes, depreciation and amortization, non-cash stock-related expense and other non-cash expenses.)
Planet Payment will announce its preliminary results for the period ended 31 December 2009 in late March 2010.
Commenting, Philip Beck, Chairman of Planet Payment, Inc., said:
“These strong financial results reflect the continued growth of our business and the operating leverage inherent in the Planet Payment business model, notwithstanding the past year’s economic headwinds. With a robust pipeline of acquiring bank and merchant rollouts in new and existing markets, we expect to achieve further growth and increased revenues in 2010.”
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 Quarterly Report for prior periods, 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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Enquiries to:
Planet Payment, Inc.
Robert F. Cox, CFO Tel: + 1 516 670 3200
www.planetpayment.com
Redleaf Communications Ltd (UK PR for Planet Payment)
Emma Kane / Rebecca Sanders-Hewett / Henry Columbine planet@redleafpr.com
Tel: +44 20 7566 6700
CJP Communications (US PR for Planet Payment)
Emily Cleary/ Thomas Rozycki Tel: +1 212 279 3115 x257
ecleary@cjpcom.com
Canaccord Adams Limited (UK) (Nomad for Planet Payment)
Mark Williams and Andrew Chubb
Tel +44 20 7050 6500
Canaccord Adams, Inc. (US) (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.
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