Shares in Worldpay rose as much as 6 per cent on Tuesday after the UK’s largest payments processor posted better than expected results for the first half.
The company said revenues had increased 10 per cent to £2.1bn in the six months to the end of June, compared with the same period last year. Net revenues, which do not include interchange and scheme fees, were up 16 per cent to £539.7m.
The company reported a pre-tax profit of £168.6m for the six-month period, compared with £300,000 in the first half of last year, while underlying earnings before interest, tax, amortisation and depreciation were £217.9m, up 19 per cent on last year.
Analysts had been expecting underlying ebitda of £208.8m, according to Thomson Reuters.
The FTSE 100 company, which had the biggest flotation on the London Stock Exchange last year when it made its debut in October, also said it would pay a maiden dividend of 0.65p a share.
Worldpay maintained its full-year guidance, and Philip Jansen, chief executive, said it was “well positioned to deliver a good performance in the second half of the year”.
“While the UK’s vote to leave the EU has resulted in increased uncertainty, we do not expect it to have a material effect on Worldpay’s trading performance,” he said.
However, the company said that if current foreign exchange rates persisted, it was likely to see “further benefits” from weak sterling in its second-half earnings.
The UK-based company has pushed forward with global expansion plans in recent months.
This week Worldpay said it had obtained a licence to process payments in Australia after striking deals to work with global companies such as Asos and Cathay Pacific Airways. In February, it launched in Canada.
Tuesday’s results came less than a month after a technical outage lasting more than two weeks left many customers unable to receive cash from gambling operators and ecommerce sites.
Worldpay acknowledged the issue on Tuesday, but added that any effects “are not likely to be material”.
Worldpay, formerly a subsidiary of Royal Bank of Scotland, was bought by US private equity groups Bain Capital and Advent International in 2010, after RBS was forced to dispose of the unit under state-aid rules for its £45bn bailout.
The company is still in the process of moving its operations from the state-backed lender’s technology systems after completing its own IT platform. It now expects to move about 300,000 customers to the new system over the next 12 months and finish the switch in mid-2017.
Shares in Worldpay were up more than 4 per cent, at 315.60p a share, at midday on Tuesday.
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