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Planet Payment reports 30% revenue growth in H1

Published: 05:41 05 Aug 2010 EDT

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New York headquartered payment and card services business Planet Payment (LON:PPT & PPTR, OTC:PLPM) reported 30% revenue growth for the first half of 2010. For the six-months ended 30 June 2010, the company generated U$27.7m (H109: US$21.3m) in total revenues. Notably its multi-currency revenues grew by 54% to US$21.6m (H109: US$14.1m).

The company highlighted that it continues to deliver solid results.

"Our revenue growth reflects the continued strength of our business model and the demand for our solutions”, Planet Payment chairman Philip Beck commented. “Planet Payment's services help acquirers open new sales channels, merchants sell more goods and services and cardholders enjoy informed choice and transparency at the point-of-sale”.

Gross profit rose 16% to US$8.7m (H109: US$7.5m), although earnings (adjusted EBITDA) were negative, with a US$0.5m loss in the period compared to a US$0.3m loss in H109. Earnings figures were stronger in the second part of the reporting period, with positive earnings (Adjusted EBITDA) of US$0.2m in Q2, up from US$0.1m in Q209.

On a GAAP (Generally Accepted Accounting Principles) basis the company achieved a 52% sequential improvement with net losses narrowing significantly to US$0.7m in Q2-2010 compared to US$1.5m in the preceding quarter.

Planet Payment said that its revenue growth in the first half reflects the increase in transaction processing volumes, which was primarily driven by increases in active merchant locations as well as improving economic conditions. 

Notably the company said that its customers continue to roll out Planet Payment’s multi-currency products, which is reflected by a 59% increase in active multi-currency merchant locations so far in 2010.  Planet Payment highlighted that the number of active multi-currency merchant locations continued to grow, with a further 900 locations added in the second quarter.

“We have been working with our customers to roll out our innovative products in new markets and activate additional merchant locations,” Beck said. “As a result of these activities and the typical seasonal uplift in our business in the second half of the year, we look forward to increased revenue and gross profit, resulting in positive cash flows and adjusted EBITDA for the remainder of 2010."

Planet Payment's services are now available in 16 countries, with the company expanding its acquiring customer base in both existing and new markets - adding services in South Africa, the United Arab Emirates (UAE), the Philippines, Singapore, Brunei, Sri Lanka and the Maldives.

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