LONDON (Alliance News) - Earthport PLC on Tuesday reported a rise in its interim revenue but widened its loss on increased administrative expenses.
In the six months to December 31, Earthport's pretax loss widened to GBP8.3 million from GBP5.1 million the year before.
The payment processing firm's revenue increased 4.5% to GBP16.1 million from GBP15.4 million. Earthport's core payment business revenues increased 19% to GBP11.9 million.
Earthport's administrative expenses jumped 22% to GBP17.5 million from GBP14.3 million. The firm underwent an organisational restructure in the first half - which resulted in a non-recurring cost of GBP700,000 and staff costs rising 14% to GBP9.1 million.
"I am delighted with the progress of the company, which is in line with our expectations and the revised strategy we set out to achieve. The team have worked incredibly hard and it is great to report growth in payment volumes and improving efficiency in the first six months of the financial year," said Chief Executive Amanda Mesler.
Earthport is currently at the heart of a tug-of-war between US peers Visa Inc and Mastercard Inc.
Visa initially made a bid of 30 pence per share in December, which was agreed with Earthport. However, in late January, Mastercard came in with its own offer at 33p.
Visa has since upped its offer to 37 pence per share, which values Earthport at around GBP247 million fully diluted. The new figure is 12% above Mastercard's offer and 23% higher than the original Visa bid.
Mastercard said it is considering its options and has urged Earthport shareholders not to accept the Visa offer.
Earthport on Tuesday reiterated that it is recommending shareholders accept the second Visa offer.
The company said it has started the third quarter "extremely well" and saw a record volume of payments in January.
Earhtport also announced Barclays PLC has upped its stake in the firm to 5.0% from below the notifiable threshold.
Shares in Earthport were down 0.6% Tuesday at 47.70 pence each.
Barclays (BARC)
