Planet Payment Reports First Quarter 2011 Results
TOTAL REVENUE INCREASES 67%
MULTI-CURRENCY REVENUE INCREASES 85%
Long Beach, NY May 16, 2011 - Planet Payment, Inc. (UK: LSE:AIM: PPT and PPTR; USA: OTCQX: PLPM), a leading international payment processor, today announced its results for the three month period ended March 31, 2011.
During the first quarter of 2011 the Company continued to deliver solid results. Total revenue was up 67% to $22.0 million (Q1’10: $13.2 million), with multi-currency revenue up over 85% to $18.6 million (Q1’10: $10.0 million). Gross profit for the quarter increased 65% to $6.7 million (Q1’10: $4.1 million).
On a GAAP basis, net income for the quarter was $0.9 million (Q1’10 net loss: ($1.5m)). Adjusted EBITDA for the period was $1.0 million (Q1’10 loss: ($0.7m). See Table 1 for reconciliation of net income (loss) to Adjusted EBITDA.
The Company’s revenue growth was primarily driven by a 67% increase in active multi-currency merchant locations over Q1’10. The Company’s total active merchant locations were at 19,944 at the end of the quarter with 8,755 new locations activated since the first quarter of 2010 (Q1’10: 11,189). First quarter has traditionally been the Company’s slowest quarter of the year, due primarily to reduced international business travel following the Christmas holiday and around the Chinese New Year, while fourth quarter is typically the most active. Due to our product mix and broadening customer and regional base, this quarter’s seasonal, sequential revenue increase was approximately 3%. This compares very favorably to previous seasonal revenue declines of 7% (Q1: 2010) and 12% (Q1:2009) as compared to the fourth quarters of 2009 and 2008, respectively.
Planet Payment also continues to benefit from a robust new business pipeline. Approximately 43% of multi-currency transaction volume processed in the month of March 2011 was attributed to merchants activated since March 2010, with 8% of the March 2011 volume derived from merchant locations activated in the first quarter of 2011.
Since the beginning of the year, the Company has continued to roll out services in the United Arab Emirates, the Philippines and other Asia Pacific countries launched in 2010 and with additional acquirers in Canada. In support of these new service launches, the Company’s cash operating expenses increased by 19% or $0.9 million as compared to the same period a year ago. The Company also continues to enhance functionality, stability and security of its processing infrastructure to support its more than 45 acquiring banks and processors and their merchant customers. Planet Payment is also working to implement additional bank and merchant solutions planned for the remainder of 2011.
In January we announced a new long term contract with Global Payments for multi-currency services in the United States and Canada, complementing the existing agreements in the Asia Pacific region.
In March we announced the expansion of our agreement with Fifth Third Processing Solutions, to offer Pay in Your Currency on ATMs throughout the United States..
Commenting on the results, Philip Beck, Chairman of Planet Payment, Inc., said: “We are very pleased with our first quarter results. Our revenue growth of 67%, is especially gratifying, given that it has traditionally been our seasonally weakest quarter of the year. First quarter performance resulted from the strong adoption and the continued deployment of our solutions by new and existing customers which is a reflection of the tremendous efforts of the entire Planet Payment team over the last few years.”
Subsequent Event
On April 26, 2011 we announced that investors led by Camden Partners had converted their entire approximately $9 million of Convertible Promissory Notes plus interest into 4,474,776 Common Shares. This transaction strengthens the Company’s balance sheet and eliminates approximately $800,000 in annual interest payments.
-End-
Additional details on the Company’s performance can be found in the Management Discussion and Analysis appended to this release. In accordance with the rules of the OTCQX market, the Company's First Quarter Report, including its Condensed Consolidated Financial Statements (unaudited), as of March 31, 2011 and December 31, 2010 and for the three months ended March 31, 2011 and 2010 have been posted on the OTCQX website at www.otcqx.com and on the Company’s website at www.planetpayment.com.
Enquiries:
Planet Payment, Inc.
Robert Cox, CFO
Tel: +1 516 670 3200
www.planetpayment.com
Redleaf Polhill Ltd (UK PR for Planet Payment)
Emma Kane / Rebecca Sanders-Hewett / Henry Columbine
Tel: +44 20 7566 6700
planet@redleafpr.com
HJMT Communications, LLC (US PR for Planet Payment)
Hilary Topper / Kristie Galvani / Lisa Gordon
Tel: +1 516 997 1950
kristie@hjmt.com
Canaccord Genuity Limited (UK) (Nomad for Planet Payment)
Mark Williams / Andrew Chubb
Tel +44 20 7050 6500
Canaccord Genuity, Inc. (US) (DAD for Planet Payment)
Andy Viles Tel: +1 617 371 3900
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 45 acquiring banks and processors stretches from North America to Asia Pacific, including China, Hong Kong, Macau, Taiwan, Malaysia and India.
Our solutions can differentiate product offerings and improve profitability, as well as help merchants transform credit card processing from a cost of doing business into a highly effective marketing and sales tool. We deliver increased transparency to cross-border commerce and offer international cardholders, whether online or in a store, restaurant or hotel, the comfort and convenience of paying in the currency they know best – their own.
Planet Payment is headquartered in New York and has offices in Atlanta, Beijing, Bermuda, Delaware, Dubai, London, Hong Kong, Shanghai and Singapore. Visit www.planetpayment.com for more information on the Company and its services. For up-to-date information follow Planet Payment on Twitter at @PlanetPayment or join Planet Payment’s page on Facebook.
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 Quarterly Report for the period, 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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