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Planet Payment’s 2009 revenues soar 31%, further growth eyed in 2010

Payment and data processor Planet Payment (AIM: PPT, OTCQX: PLPM) has had an exceptionally good year as its losses narrowed considerably and revenues soared 31% with yet more growth expected this year. The company continues executing its strategic objectives, concluding business expansion and cross sales of its products to existing and new customers.

Total revenues jumped to US$47.3 million in 2009, while gross profit soared 42% to US$16.3 million to give Planet Payment an adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) of US$0.5 million compared to a loss of US$6.3 million in 2008.
Net losses narrowed 63% from US$11 million to US$4 million.

The full year performance got a boost from a strong final quarter, which saw the company’s revenues climb 21% year-on-year to US$14.2 million, while net losses improved 59% from the previous fourth quarter to just US$0.9 million.

The substantial revenue increases were largely due to the company’s operational achievements during the year, which included the launch of multicurrency processing services in India, the commencement of domestic and multicurrency processing services in Canada, a 23% increase in active merchant locations. The year also saw the expansion of existing relationships as the company has entered into new agreements with JCB to provide services for JCB’s acquired merchants in Hong Kong and North America and the Agricultural Bank of China to provide multicurrency services in an additional eight provinces.

Total settled transaction volume increased 38% to US$2.2 billion.

“These results reflect the strength of our business model and the continued execution of our strategic objectives. We are pleased that Planet Payment has outperformed the market during this difficult economic climate. We continue to cross sell our existing and new innovative products to our acquiring institution customers and to their customers,” said chairman of Planet Payment Philip Beck.

Post-period, the company has signed an agreement with the Middle East and North Africa opaerating Network International to market Planet Payment’s Pay in Your Currency service to merchants in UAE, with the launch of multicurrency services in the Philippines planned for Q2 2010.

Total revenues for Q1 2010 are projected to increase approximately 25% year-on-year to over US$13 million. Revenues in Q1 will still be lower than in Q4 2010 and are expected to rebound to the level achieved in the final quarter in March, which the company said typically occurred in the past.

“We believe the company is well positioned for further growth in 2010 as we continue to expand into new countries and are poised for the recovery in our existing markets,” added Beck.

Broker Daniel Stewart & Company issued a note on Planet Payment immediately following the release of the report, saying the results were in line with expectations and maintaining its forecast for year on year top-line growth of 45% for the current year with more client additions and geographical expansion. The broker noted that 11% of December 2009 revenue was from merchants activated in Q4 2009.

Disclosure: The author holds no positions in the company