Fourth Quarter 2008 Trading Update
01/07/09
TOTAL REVENUE INCREASES BY MORE THAN 90% TO OVER $35M
Continued Strong Growth Through Fourth Quarter 2008
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 2008.
Management estimates that total revenue for the full year 2008 increased by more than 90% to over $35m (2007: $18m). This growth was led by new merchant deployments with processors and banking customers in the United States, Greater China, Malaysia, and Taiwan and the acquisition of the iPAY business, which facilitates payment for Internet transactions. Revenue from core multi-currency processing services increased by more than 60% to over $23m (2007: $14m).
Management estimates that total revenue for the fourth quarter 2008 increased by more than 57% to approximately $11m (2007: $7m), and by more than 8.5% compared to the third quarter 2008. Revenue from core multi-currency processing services for the fourth quarter 2008 increased by approximately 44% to over $7m (2007: $5m), and by more than 23% compared to the third quarter 2008.
Several important bank and merchant implementations were completed in the fourth quarter, with further implementations scheduled to be completed in the first and second quarter of 2009. These, together with the customer base implemented as of year end, constitute a robust business pipeline, which management expects will drive further growth in new and existing markets in 2009.
The Company effected a number of cost saving measures in the fourth quarter, to align the Company’s cash operating expenses with its current and near-term projected revenue, with the objective of accelerating the achievement of positive EBITDA and profitability in 2009. These measures are projected to produce over $3m in 2009 cost savings compared to the annualized cash operating expenses of $20.5 million prior to this initiative, a 17% reduction.
On 19 November 2008, Planet Payment’s common stock began trading in the US on the OTCQX market, operated by Pink OTC Markets Inc. Planet Payment’s shares trade on the OTCQX under the ticker “PLPM” quoted in US dollars. Shares of Planet Payment continue to be traded on the London Stock Exchange’s AIM market priced in Pounds Sterling. The new quotation is intended to enhance Planet Payment’s market exposure and trading visibility, at initial and continuing costs far less than the expense of a traditional dual listing. The OTCQX listing also allows investors to hold their shares and settle their trades through the US settlement systems, like any other US stock.
Planet Payment will announce its preliminary results for the period ended 31 December 2008 in late March 2009.
Commenting, Philip Beck, Chairman of Planet Payment, Inc., said:
“Our strong fourth quarter financial results reflect the continued growth of our business, notwithstanding the current economic conditions. We have built strong relationships with our customers, international processors and acquiring banks, who continue to deploy our solutions to their broad portfolios of hoteliers, restaurateurs, retailers and e-commerce merchants. With a robust pipeline of merchant rollouts in new and existing markets, we expect to achieve further growth and increased revenues in 2009.”
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Enquiries:
Planet Payment, Inc. Tel: + 1 516 670 3200
Philip D. Beck, Chairman & CEO www.planetpayment.com
Seth Asofsky (CFO)
Redleaf Communications (UK PR for Planet Payment) Tel: 020 7566 6700
Samantha Robbins/Rebecca Sanders-Hewett/Henry Columbine
planet@redleafpr.com
ICR, Inc. (US PR for Planet Payment) Tel: + 1 203 682 8200
Brian Prenoveau, CFA / Ashley Ammon
Canaccord Adams, Inc. (US) (DAD for Planet Payment) Tel: +1 617 371 3900
Andy Viles
Canaccord Adams Ltd (UK) (Nomad for Planet Payment) Tel: +44 20 7050 6500
Mark Williams
About Planet Payment:
Planet Payment’s Common shares trade 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 Planet Payment’s suite of multi-currency processing solutions, which includes 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, New Castle 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 Third Quarter Report 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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