Paysafe Group plc (LSE: PAYS, “Paysafe” or the “Group”), a leading global provider of payment solutions, announces its audited preliminary results for the year ended 31 December 2016.
Financial highlights
$m
2016
2015
Revenue
1,000.3
613.4
Year-on-year revenue growth
63%
68%
Organic constant currency year‐on‐year revenue growth1
21%
13%
Adjusted EBITDA2
300.8
152.6
Adjusted EBITDA margin
30.1%
24.9%
Operating profit
194.4
26.2
Operating profit margin
19.4%
4.3%
Adjusted profit after tax3
213.0
108.7
Statutory profit after tax
142.0
7.4
Adjusted fully diluted EPS ($)3
0.42
0.26
Statutory fully diluted EPS ($)
0.28
0.02
Adjusted cash conversion before payments working capital4
101%
92%
Adjusted cash conversion after payments working capital4
86%
60%
$m
31 Dec 16
31 Dec 15
Net debt5
279.8
431.3
Net debt to last 12 months adjusted pro-forma EBITDA6
0.9x
2.1x
Financial highlights
- Group exceeds $1bn in revenue for the first time and delivers adjusted EBITDA of $301m and statutory operating profit of $194m.
- Exceptional year-on-year growth in revenue and adjusted EBITDA margin.
- Group continues to demonstrate impressive cash conversion and balance sheet strength, with significant debt capacity at 31 December 2016.
- Elevation to the FTSE 250 alongside ensuring strong financial management and appropriate governance framework, control environment and enhanced reporting.
Operational highlights
- Completed Skrill integration five months ahead of schedule.
- MeritCard and Income Access acquired, adding diversification of risk profile and additional product capability.
- Continued investment to maintain best-in-class KYC, risk management and operational third-party technology.
- Commenced development of consolidated, comprehensive and scalable payments platform with continued modular launches planned for 2017.
- Launched developer self-service portal.
Governance update
- Jennifer Allerton and Karen Guerra appointed as Non-Executive Directors today with immediate effect. An announcement regarding these appointments is being separately released today.
- Following a comprehensive Audit Committee-led external audit tender process, Deloitte has been appointed auditor from FY 2017 onwards.
Outlook
- Management expects to achieve low double-digit organic revenue growth in FY 20177, while expecting to at least maintain a 30.1% adjusted EBITDA margin. This outlook is supported by trading year to date.
Commenting on the results, Paysafe Chairman Dennis Jones said: “This is our first full year as Paysafe, and it’s been a year of continuing change, with growth, agility, and risk management at the heart of our business. The management team has not only delivered on the promise of our Skrill acquisition but continued to grow and diversify our capabilities, while delivering an impressive financial performance.”
President and Chief Executive Officer Joel Leonoff said: “It has been a great year for the Group and I’m pleased to report an outstanding set of numbers. We have delivered strongly against our financial and strategic targets, passing $1bn in revenue for the first time and reporting adjusted EBITDA of $301m.
“We have big ambitions in a sector that is rapidly accelerating. We will continue to invest strategically and have commenced development of our consolidated, comprehensive and scalable payments platform. I am confident in the Group’s ability to retain this positive momentum into 2017 and we are passionate about delivering the products and services to support the changing payment needs of consumers and merchants in an evolving digital economy.”
Source: Paysafe