Worldpay H1 profit and revenue grow

Payments processor Worldpay – which floated on the London Stock Exchange last year – reported a rise in first-half underlying earnings and pre-tax profit amid strength in all its businesses, as it declared a maiden interim dividend of 0.65p per share.

For the six months to the end of June, pre-tax profit rose to £168.6m from £0.3m in the first half of 2015 as revenue jumped 10% to £2.14bn.

Net revenue was up 16% to £539.7m thanks to the expansion of business with existing customers, the roll-out of enhanced capabilities and innovation, and new customer wins. Meanwhile, underlying earnings before interest, tax, depreciation and amortisation were 19% higher at £217.9m.

Worldpay UK net revenue grew 12% and the group said it continues to increase customer numbers and product penetration through cross selling. It also benefited from the overall positive effect on product propositions and pricing following the reduction in interchange costs.

Chief executive officer Philip Jansen said: “We delivered a strong first half performance, further enhancing our product propositions, and deepening our capabilities and presence, both by geography and across our divisions and verticals. We are well positioned to deliver a good performance in the second half of the year, and our medium-term guidance remains unchanged.

“While the UK's vote to leave the EU has resulted in increased uncertainty, we do not expect it to have a material effect on Worldpay's trading performance. Our confidence in our prospects is reflected in further investment in capabilities to support sustainable growth over the medium-term, and the declaration of our maiden interim dividend."

Shore Capital said the results were "robust", with a weaker second half in prospect.

"We see Worldpay as a high quality business in a growth area of the market, coming into a crucial year with the rollout of the new platform to seek operational independence and expansion in payment processing."

At 1147 BST, shares were up 4.4% to 314.70p.