Earthport (AIM: EPO.L), the cross-border payments service provider, is pleased to announce an update on trading for the year ended 30 June 2012.
Revenue grew by approximately 20% Transaction volumes increased 53% year-on-year, accelerating through the year:
- o Increase in June 2012 of 103% compared to June 2011
- o Increase in August 2012 of 131% compared to June 2011
Country network expanded to a total of 54 countries, with several more in progress
19 new customers were signed in the year, 12 customer implementations went live while an additional 13 customers are contracted but not yet live
Further investment made in infrastructure and people to align the business with its growth opportunities New regulations, such as the Dodd
Frank Act (DFS 1073) driving additional opportunities
Strong progress was achieved during the year with several major customer signings and go lives. In addition, network coverage expanded and transaction volumes increased throughout the year and have continued to do so post the year end.
Revenue grew by approximately 20% compared to the prior year. Costs were in-line with market forecasts, reflecting increased investment in infrastructure and people to align the business with its growth opportunities. Investment has continued in enhancing the core platform and service offering, including the commissioning of an additional data centre.
The Company experienced increasing momentum in transaction volume growth during the second half of the year following the investment made in the business in earlier periods. Transaction volumes for the year as a whole grew 53% compared to the previous year and accelerated through the year, with June 2012 showing a 103% increase over June 2011. This acceleration has continued since the year end with the number of transactions in August 2012 up 131% compared to June 2011. Encouragingly, several of the customers driving this growth are still in the early stages of launching their systems.
Customer and Partner wins
Key new customers integrated during the course of the year have contributed to transaction growth and include:
- A leading money transfer organisation, which is now processing transactions into 38 countries through Earthport and continuing to grow
- A leading eCommerce provider in Russia and the CIS, which is just starting its rollout
- Two new customers gained through a partnership with an expense and payroll service provider and a further three through this partnership since the year end
In total, 19 new customers were signed and 12 customers went live during the year, with a further 13 customers contracted but not yet live.
The business has also engaged with several sales channel partners focusing on the banking sector. Already announced partnership deals include Fiserv in North America, NEC Decillion in Singapore and GWT in Japan. Through these partnerships, Earthport is leveraging existing sales infrastructure and business relationships to help accelerate the growth of the pipeline.
The Company experienced increasing demand from new and existing customers to engage on a consultancy basis to extend and enhance the service offering, opening new revenue opportunities for the Company. One of the drivers for this demand is regulatory change in North America, particularly the implementation of the Dodd Frank Act (DFS 1073). Since the end of the financial year, Earthport has signed two paid engagements with customers to provide design and development services related to DFS 1073.
The expansion of local payment territories continued during FY12 with the addition of four new live routes, bringing the total number of countries covered to 54, and several more in progress. The network has been further strengthened to provide contingency and resilience on certain key routes. Expansion of the network is a strategic imperative for Earthport and work continues to implement contracted routes and to add further coverage.
Hank Uberoi, Executive Director, Earthport plc, commented, "While the increase in transaction volumes in the year has been good, we believe this is only the beginning. The pace of traction in several key customer accounts is increasingly substantial and gaining momentum. With several more accounts already contracted and set to go live in the coming year and a growing pipeline of opportunities we are confident that Earthport has the infrastructure, customer base and new business pipeline to deliver accelerated growth in future years."
The Company expects to announce results for the year ended 30 June 2012 in late November 2012.