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Paysafe passes $1bn revenue mark for first time

| By iGB Editorial Team
Paysafe Group generated revenue of more than $1 billion for the first time in 2016 as saw it registered all-time highs across key metrics.

Paysafe Group generated revenue of more than $1 billion for the first time in 2016 as saw it registered all-time highs across key metrics.

The payments group, which owns the Neteller, Skrill and Paysafecard brands, brought in just over $1 billion (€945 million) in the year to December 31, which was up 63% on 2015. Revenue growth was up 23% in terms of organic constant currency.

Adjusted EBITDA was just over $300 million, which was double the figure for 2015, while operating profit soared by more than 600% to $194.4 million. The comparative period was affected by costs in relation to the acquisition of Skrill in August 2015.

Adjusted profit after tax doubled to $213 million, while statutory profit after tax was up to $142 million compared to just $7.4 million in 2015.

Paysafe – formerly Optimal Payments – said it “continues to demonstrate impressive cash conversion and balance sheet strength, with significant debt capacity”.

“It has been a great year for the group and I'm pleased to report an outstanding set of numbers,” said Joel Leonoff, president and chief executive.

“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.”

Among its operational highlights for 2016, Paysafe said it completed the integration of Skrill five months ahead of schedule. Further, the acquisitions of MeritCard and Income Access added “diversification of risk profile and additional product capability”.

The company said it expects to achieve low double-digit organic revenue growth in FY 20177, while expecting to at least maintain a 30% adjusted EBITDA margin.

The company also announced that Jennifer Allerton and Karen Guerra have been appointed as non-executive directors today with immediate effect.

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.”

Related article: Paysafe thriving following Skrill takeover

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