Paysafe profit surges after merger

FTSE 250 payment solutions provider Paysafe –known as Optimal Payments before it merged with competitor Skrill in August last year – posted a rise in first-half profit as it upgraded its guidance for 2016 revenue and adjusted earnings.

In the six months to the end of June, pre-tax profit rose sharply to $74.6m from $4.6m in the first half of 2015 as revenue grew to $486.7m from $223m. The year before, the group had incurred costs related to the reverse takeover of Skrill.

The company said headcount increased to 1,828 employees at the end of the first half from 1,578 at the start of the year, reflecting the enlarged revenue-generating lines of the group and ongoing targeted investment in compliance and risk management.

In addition, it noted new partner collaborations, payment product enhancements and markets enduring during the period across its payment processing, digital wallets and prepaid divisions.

The group said that as a result of the “exceptional” first half, it was upgrading its full-year revenue guidance to be in the range of $970m to $990m, versus a previous figure of $960m. Meanwhile adjusted earnings before interest, tax, depreciation and amortisation for full-year 2016 are expected to be between $287m and $293m.

President and chief executive officer Joel Leonoff said: "I am delighted with the group's first half results. We have again delivered very strong growth as our increasingly diversified payments business expands further across pay-before, pay-now and pay-later products and services.

“With the exceptional performance delivered in the first half, as well as continued strong trading in the early part of the second half, management and the board are confident in the group's prospects for the full year."

At 0806 BST, Paysafe shares were up 6.2% to 415.30p.