Paysafe reports 11% increase in Revenue


Paysafe Group, said adjusted core earnings rose 17.3 percent, as more people used the company’s prepaid digital wallets to make payments.

The company, which offers pre-paid cashcards and online wallets that are popular among online gambling customers, said adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose to $169.2 million for the period ended June 30.

Revenue also rose to $538.7 million for the period, compared with $486.7 million last year.

Paysafe has backed a 3 billion pound ($3.9 billion) takeover offer from a consortium of funds managed by Blackstone (BX.N) and CVC Capital Partners CVC.UL, the latest in a string of deals in the sector.

Other highlights for the first half of 2017 included the acquisition of Merchants’ Choice Payment Solutions (MCPS) for $470 million, of which $380 million was financed by debt. So, considering this acquisition, the revenue of Paysafe group would have increased by $167 million and adjusted EBITDA would have increased by $25 million.

Paysafe also increased its headcount by 9% to 2,299 from 2,116 in December 2016, which reflected the increased need for platform development and maintenance and compliance operations. The company also migrated its tax governance from the Isle of Man to the UK.

Paysafe Chairman Dennis Jones said: “After exceptional trading in 2016, Paysafe Group has returned to a more sustainable level of low-double-digit revenue growth in the first half of 2017. This reflects our increasingly diversified set of businesses as the management team continues to build a stable and robust global payments platform. To that end, we were pleased to announce the acquisition of US-based MCPS in July, which strengthens our processing business, increases Paysafe Group’s scale in North American acquiring and helps us to continue re-balancing our portfolio away from online gambling.”

Due to the offer given by Blackstone Group for the acquisition of Paysafe, the company has been restricted from giving its forward guidance for 2017. Overall, the numbers reflect strong and robust growth in the company, which is no surprise considering the fact that it is a leader in one of the fastest growing sectors in the financial world.