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Paysafe Group

Paysafe Group plc: Final results for year ended 31 December 2016

07 March 2017 12:00

FOR IMMEDIATE RELEASE

Paysafe delivers another strong performance in FY 2016, reiterates positive outlook for 2017

LONDON (7 March 2017) – Paysafe Group plc (LSE: PAYS, “Paysafe” or the “Group”), a leading global provider of payment solutions, announces its audited preliminary results for the year ended 31 December 2016.


Financial highlights

- Group exceeds $1bn in revenue for the first time and delivers adjusted EBITDA of $301m and statutory operating profit of $194m.

- Exceptional year-on-year growth in revenue and adjusted EBITDA margin.

- Group continues to demonstrate impressive cash conversion and balance sheet strength, with significant debt capacity at 31 December 2016.

- Elevation to the FTSE 250 alongside ensuring strong financial management and appropriate governance framework, control environment and enhanced reporting.

Operational highlights

- Completed Skrill integration five months ahead of schedule.

- MeritCard and Income Access acquired, adding diversification of risk profile and additional product capability.

- Continued investment to maintain best-in-class KYC, risk management and operational third-party technology.

- Commenced development of consolidated, comprehensive and scalable payments platform with continued modular launches planned for 2017.

- Launched developer self-service portal.

Governance update

- Jennifer Allerton and Karen Guerra appointed as Non-Executive Directors today with immediate effect. An announcement regarding these appointments is being separately released today.

- Following a comprehensive Audit Committee-led external audit tender process, Deloitte has been appointed auditor from FY 2017 onwards.

Outlook

- Management expects to achieve low double-digit organic revenue growth in FY 20177, while expecting to at least maintain a 30.1% adjusted EBITDA margin. This outlook is supported by trading year to date.

Commenting on the results, Paysafe Chairman Dennis Jones said: “This is our first full year as Paysafe, and it’s been a year of continuing change, with growth, agility, and risk management at the heart of our business. The management team has not only delivered on the promise of our Skrill acquisition but continued to grow and diversify our capabilities, while delivering an impressive financial performance.”

President and Chief Executive Officer Joel Leonoff said: “It has been a great year for the Group and I’m pleased to report an outstanding set of numbers. We have delivered strongly against our financial and strategic targets, passing $1bn in revenue for the first time and reporting adjusted EBITDA of $301m.

“We have big ambitions in a sector that is rapidly accelerating. We will continue to invest strategically and have commenced development of our consolidated, comprehensive and scalable payments platform. I am confident in the Group’s ability to retain this positive momentum into 2017 and we are passionate about delivering the products and services to support the changing payment needs of consumers and merchants in an evolving digital economy.”

Investor and analyst conference call

The company will hold an investor call hosted by Paysafe President and CEO Joel Leonoff and CFO Brian McArthur-Muscroft at 2:00pm GMT on Tuesday 7th March. Participants may join the call either over the phone or via a live online webcast.

Dial-in number: +44(0) 800 953 1289 (UK) / +1 866 869 2321 (US)

Conference ID: 76567630

Audiocast link: http://engage.vevent.com/rt/webcasting/index.jsp?seid=792

Chairs: Joel Leonoff (President and CEO), Brian McArthur-Muscroft (CFO)

Participants will be asked to register their names and companies when joining the call.

About Paysafe

Paysafe provides digital payments and transaction-related solutions to businesses and consumers around the world. Paysafe is redefining payments by enabling fast, convenient and secure ways to pay before, pay now and pay later through its payment processing, digital wallets, prepaid solutions and card issuing, and acquiring products and services. We believe that every point of every payment should be relevant, simple and secure. With two decades of experience, Paysafe is trusted by businesses and consumers to move and manage money through more than 100 payment types and 40 currencies. Paysafe offers multi-platform products with an emphasis on emerging payment technologies including mobile. Paysafe's brand portfolio includes NETELLER® and Skrill®, MeritCard, paysafecard®, payolution®, Income Access and FANS Entertainment. Paysafe Group plc shares trade on the London Stock Exchange under the symbol (PAYS.L). For more information, visit: www.paysafe.com.

This announcement contains inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014.

Read the full RNS.



For further information, contact:

Paysafe Group plc

Michelle Singleton, VP Investor Relations
+44 (0) 20 3826 9800 / investorrelations@paysafe.com

Gavin Haycock, SVP Corporate Communications
+44 (0) 20 3826 9767 / gavin.haycock@paysafe.com

Certain statements in this announcement are forward-looking statements, for example, statements including the words "anticipate", "expects", "believe" or other similar words. These forward-looking statements speak only as at the date of this announcement. These statements concern, or may affect, future matters and include matters that are opinions. Such statements are based on current expectations and beliefs and, by their nature, are subject to a number of known and unknown risks and uncertainties that could cause actual results and outcomes to differ materially from any expected future results or performance expressed or implied by the forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements. The information and opinions expressed in this announcement are subject to change without notice and, except as required by law, neither Paysafe Group plc nor any other person assumes any responsibility or obligation to update publicly or review any of the forward-looking statements contained within this announcement, regardless of whether those statements are affected as a result of new information, future events or otherwise.

Please note that due to rounding, numbers presented throughout this document may not add up precisely to the totals provided. Percentage changes are calculated on unrounded figures.



1 Unaudited organic constant currency year on year revenue growth is an alternative performance measure that the Group uses to communicate the underlying revenue performance of the Group excluding the impact of acquisitions and currency movements. The prior year represents pro-forma constant currency revenue growth. Further information on our alternative performance measures, including definitions, explanations and reconciliations, is included at the end of this results release.

2 Adjusted EBITDA is an alternative performance measure that the Group uses to communicate the underlying operating profit performance of the Group. Adjusted EBITDA is defined as results of operating activities before depreciation and amortisation, share-based payment expense, fair value gains and losses on share consideration payable, foreign exchange gains and losses, and gains and losses on disposals of assets. It is also adjusted for exceptional or non-recurring items which are defined as items of income and expense of such size, nature or incidence that, in the view of management, are not reflective of the underlying performance of the Group and should be disclosed to explain the performance of the Group.

3 Adjusted profit after tax is defined as reported profit after tax excluding share-based payment expense, fair value gains and losses on share consideration payable, foreign exchange gains and losses, losses on disposals of assets and exceptional or nonrecurring items as explained within the Adjusted EBITDA footnote above. It also excludes amortisation of acquired intangibles, and the tax effect of the adjustments set out above. No adjustments are made to reported fully diluted weighted average number of shares to calculate adjusted fully diluted earnings per share (EPS).

4 Adjusted free cash conversion is an alternative performance measure the Group has adopted to demonstrate our ability to convert our EBIT growth into cash that can be reinvested in the business through investment, returned to shareholders, or used to support our strategic pillar of bold M&A.

5 Reported net debt includes short and long-term debt (excluding deferred finance costs), finance leases, deferred cash consideration payable and contingent cash consideration payable offset by cash and cash equivalents.

6 Net debt and net debt / last 12 months adjusted EBITDA are alternative performance measures which management uses to give investors and stakeholders an indication of the debt capacity of the Group.

7 At current exchange rates.

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Press Contacts

Lara Cresswell

Interim VP, Corporate Communications

Tel: +447880389159

Email: lara.cresswell@paysafe.com


About Paysafe Group

Paysafe provides digital payments and transaction-related solutions to businesses and consumers around the world. Paysafe is redefining payments by enabling fast, convenient and secure ways to pay before, pay now and pay later through its payment processing, digital wallets, prepaid solutions and card issuing, and acquiring products and services. We believe that every point of every payment should be relevant, simple and secure. With two decades of experience, Paysafe is trusted by businesses and consumers to move and manage money through more than 100 payment types and 40 currencies. Paysafe offers multi-platform products with an emphasis on emerging payment technologies including mobile. Paysafe's brand portfolio includes NETELLER® and Skrill®, MeritCard, paysafecard®, payolution®, Income Access and FANS Entertainment. Paysafe Group plc shares trade on the London Stock Exchange under the symbol (PAYS.L). For more information, visit: www.paysafe.com.

https://www.paysafe.com

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