17 Feb 2015 07:00
17 February 2015
Earthport plc
("Earthport", or, the "Company")
Trading Update and Notice of Results
Continued revenue growth and significant pipeline of customers under contract
Earthport (AIM: EPO.L), the global payments company, is pleased to provide a trading update for the six month period ended 31 December 2014.
Highlights:
· Revenue expected to be over £8.7 million (H1 2014: £3.32 million), an increase of over 160% compared to the previous period
o On a like-for-like basis, revenue increased by over 90%, demonstrating an acceleration in underlying business performance
· Cash balance at 31 December 2014 amounted to over £32 million (31 December 2013: £8.19 million)
· Strong operational progress:
o 17 new customers were signed in the period (H1 2014: 12)
o 8 customers went live in the period (H1 2014: 8)
o 5 new payment corridors were added to Earthport's network including 3 new countries
· Pipeline of 32 customers under contract and in implementation stage ahead of going live (H1 2014: 20)
o With many clients yet to go live, and with several in advanced stages in the pipeline, there is significant embedded revenue potential
· New additions to the senior executive team:
o Daniel Marovitz (President of Europe)
o Mia Shernoff (Global Head of Marketing and Market Development)
· Awards:
o Quoted Company Awards 2015 - Technology company of the year
o FS Tech - B2B Payments Innovation of the year
o Fin Tech 50 - Game-changers "transforming the future of finance"
Continued revenue growth and decreased cash consumption
Earthport reports strong revenue growth for the half year driven by transactional and professional service revenue growth. Revenue increased by more than 160% over the comparable period and is expected to be over £8.7 million (H1 2014: £3.32 million). On a like-for-like basis, revenue increased by over 90% demonstrating a continued acceleration of the underlying business. During the half, Earthport contracted with some of the world's leading banks and at 31 December 2014 had a pipeline of 32 customers (H1 2014: 20) under contract and in implementation stage ahead of going live. During the period 17 new customers were signed with 8 customers going live. Key clients signed during the period include Standard Chartered, United Nations Federal Credit Union and Santander UK plc.
With the growth of the organisation and leadership team, Earthport's head count increased by 18% whilst net cash used in operations decreased by over 30% to approximately £2.0 million compared to the prior year period of £3.03 million.
Strengthened leadership team
Post period, Earthport was delighted to announce key hires of industry veterans, further strengthening Earthport's world class team. Daniel Marovitz, an industry veteran highly experienced in ecommerce and transaction banking joined the Company as President of Europe this month. Daniel will be responsible for the Company's European commercial business lines.
Mia Shernoff, joined as Global Head of Marketing and Market Development after over ten years at JP Morgan Chase as Chief Marketing Officer of the bank's Paymentech division. Mia will be responsible for the Company's market development, communications, and investor and media relations.
Hank Uberoi, CEO Earthport plc commented: "Earthport has experienced another strong performance as the transactional revenues and customer base of world class banks and money transfer organisations increased. The Earthport model is fast becoming the most recognised standard for cross-border payments as reflected by recent industry award wins. Our pipeline of new customers continues to grow whilst significant embedded revenue potential with existing clients remains a large opportunity. We are therefore confident of a successful outcome for the full year and beyond."
Notice of results:
The Company will be announcing Interim Results for the six months to 31 December 2014, on Wednesday 18 March 2015.
The management will be hosting a presentation for analysts on the day of results at 10.00am, at the offices of Newgate Communications: Sky Light City Tower, 50 Basinghall Street, London, EC2V 5DE.
Analysts who wish to attend the presentation should register their interest with Newgate, contactable at earthport@newgatecomms.com or 020 7653 9845
For further information, please contact:
Earthport plc Hank Uberoi | 020 7220 9700 |
Charles Stanley Securities Mark Taylor / Paul Brotherhood | 020 7149 6000 |
Panmure Gordon Fred Walsh / Duncan Randall / Maisie Atkinson | 020 7886 2500 |
Newgate Communications Tim Thompson / Jasper Randall / Georgia Lewis | 020 7653 9850 |
About Earthport:
Earthport plc is a financial services organisation providing cross-border payments services to banks, e-commerce providers, money transfer companies and payment administrators. Earthport is headquartered in London with a regional office in New York.
One of the FinTech50 2015 - judged to be the game-changers transforming the future of finance - Earthport is also winner of the Grant Thornton Quoted Company Awards 2015 Technology company of the year award and FStech/Retail Systems' B2B Payments Innovation of the Year (2014).
Earthport provides the industry with the largest open network for global bank payments. Worldwide, over 50 banks are connected into Earthport's network for the efficient clearing of low value payments. With one connection to Earthport's network, clients benefit from sophisticated validation and compliance services, efficiently serving their customers with more innovative payment products.
Earthport is listed on the Alternative Investment Market (AIM) on the London Stock Exchange. Earthport plc is authorised and regulated by the Financial Conduct Authority under the Payment Service Regulations 2009 for the provision of payment services. Find out more at www.earthport.com and on Twitter @Earthport, LinkedIn, Youtube, Slideshare and Google+.