Planet Payment looks further afield for revenue growth

AIM-listed global payments group Planet Payment bolstered its presence in emerging markets during 2013 as it sought out new sources of revenue growth.

The group, which provides currency conversion and multi-currency processing services across 22 countries in Asia Pacific, North America, the Middle East, Africa and Europe, reported a small increase in net revenue in the fourth quarter to $12.2 million (£7.33 million), compared to $11.9 million last year. This brought net revenue for the full year to $46.6 million, compared to $43.6 million for 2012.

Net income for the quarter was $200,000 compared to net loss of $100,000 in the fourth quarter of 2012. Adjusted EBITDA for the quarter was $1.3 million, up from $900,000. The total for the full year was $4.2 million, compared to $2.4 million for the full 2012 fiscal year.

The group increased its merchant locations to 61,000 from 41,000 over the year. It built a number of processing agreements with Visa. It already had a strategic partnership in place for emerging markets, but extended this with POS and ATM services for banks in Myanmar and Grupo Bimbo in Mexico during the year.

The group extended its multi-currency processing agreements with Network International and signed an agreement with BCA in Indonesia for a new service launched in December. The group was also active in China, launching services with ICBC in Macau during the year.

However, the group's expansion was not confined to emerging markets. In the US, it launched new services with Vantiv and Payment Alliance International.

Deal volume also increased, with total settled dollar volume processed increasing to $7.1 billion from $6.1 billion in 2012.

The shares were over 250p in 2012, but then halved over the next 18 months. They have seen a significant improvement since the start of 2014, after a new chief executive and chief operating officer were appointed. However, today the shares fell 1% to 205.4p.