PAYNOVA’S MANAGEMENT STRENGTHENED BY NEW CFO AND RESTRUCTURING CONTINUES AS PLANNED
· The management group is being strengthened by a new CFO
· Paynova’s streamlining and restructuring, in association with Indian company Xponse IT Services, continues towards positive cash flow as planned
· The transaction volumes for the fourth quarter of 2006 increased by around 50 percent compared with the previous quarter
· The company’s operating expenses are expected to fall from around MSEK 5 during the third quarter of 2006 to around MSEK 3 per month with full effect during the second quarter of 2007
FURTHER STRENGTHENING OF THE MANAGEMENT GROUP
Paynova is continuing to strengthen the management group and has recruited Magnus Tholén Svensson as its new CFO. He comes straight from a position as CFO at listed company Diamyd Medical. Magnus Tholén Svensson will take up the post of CFO at Paynova no later than April 2007.
OBJECTIVE OF CASH FLOW POSITIVITY DURING THE SECOND QUARTER REMAINS
The aim of the restructuring work with Xponse is still for Paynova to be cash flow positive on a monthly basis by June 2007 (excluding restructuring costs of a one-off nature). In order to achieve this goal, continued strong positive development of Paynova’s transaction volumes is required.
GOOD GROWTH IN TRANSACTION VOLUMES DURING THE FOURTH QUARTER
The preliminary increase in transaction volumes during the fourth quarter of 2006 amounted to around 50 percent compared with the previous quarter, as opposed to the 40 percent plus previously expected.
OPERATING EXPENSES REDUCED TO AROUND MSEK 3 PER MONTH
The implementation of the restructuring plan agreed with Xponse is continuing as planned. As a result of the ongoing restructuring and streamlining, Paynova believes that the company’s operating expenses will be reduced by around 40 percent before costs of a one-off nature. The reduction in expenses is estimated to take full effect during the second quarter of 2007. From having been around MSEK 5 per month during the third quarter of 2006, the operating expenses will be reduced to around MSEK 3 per month.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Per Sunnemark, CEO and President
+46 (0)701-476 755
Paynova offers an international, account-based payment service via the Internet. With Paynova as the only counterpart, e-retailers get a payment guarantee for around twenty payment options in 10 languages with 8 currencies in a security-certified interface (PCI). Consumers can open an account, a Paynova Wallet, for free on the Internet to make purchases simpler and more secure, as well as look after transfers between family members, friends and acquaintances.
Paynova has agreements with around 1,000 e-retailers. Most are found in the following prioritised segments: travel, retailing and media/network games. The company has been listed on NGM Equity since February 2004. For more information: www.paynova.com