Earthport revenue increases as cross-border transactions surge

Cross-border payment provider Earthport expects to report an increase in revenue supported by a rise in the number of transactions and payment volumes for the first half of the year.

During the six months ended 31 December 2016, the company strengthened its relationship with with Bank of America Merrill Lynch and gained approval for cross border payments for banks in India.

The AIM-listed company expects to report a 35% rise in revenue to about £14.3m, compared to the previous year, with transactional revenues comprising more than 95% of total revenue. The gross margin is expected to remain at about 70%, as it was in the last full year.

The number of transactions in the period increased 80% to 5m and December set a record month for the number of transactions in Earthport’s history, while payment volumes surged 86% to $7.8bn.

At the end of 2016, the company has about £11.4m in cash.

Chief executive Hank Uberoi said: "The performance of the business in the past six months has been encouraging with a substantial increase in the number of transactions and payment volumes resulting in strong revenue growth. This positive momentum, coupled with our solid market positioning, gives us confidence of further successful growth going forward."

Shares in Earthport were up 2.17% to 23.50p at 0816 GMT.