Strong H1 growth for Optimal Payments despite Neteller dip

Optimal Payments posted a 37% increase in revenues but its ewallet business Neteller saw a 10% drop as a result of Black Friday, the payments company has revealed in today’s first-half numbers.

The company saw revenues increase from US$57.4m in H1 2011 to $78.9m for the six months ended 30 June 2012, while EBITDA rose 76% from $6.4m to $11.2m and profit before tax was $1.7m, compared to the company’s $4.1m loss in the same period last year. Net loss dropped from $3.6m to $0.8m.

However, Optimal’s Neteller division recorded a decrease in revenues from $18m in H1 2011 to $16.2m which is attributed to the general decline in the number of poker players playing online after Black Friday and the subsequent shutdown of Full Tilt Poker.

Optimal Payments president and CEO Joel Leonoff said the results set up the company well for a re-entry into the US market: “Our product strength and long standing experience in the online gaming space positions us well to take advantage of online payment opportunities evolving in the US,” he said. The results also confirm that Optimal Payments is holding discussions with land-based casinos in the US with a view to agreeing partnerships.

“The Neteller brand, which was a market leader in the US prior to UIGEA being enacted, as well as our leadership experience in straight through processing and risk management, should allow Optimal Payments to regain a substantial position in this re-emerging regulated US market,” Leonoff added.

The results are the first full interim numbers for Leonoff, who replaced Mark Mayhew as president and CEO after he stepped down on 31 July 2011 following Neovia’s acquisition of Optimal Payments in February during the same year, which saw Neovia take its former rival’s name.

During the first half of the financial year, Optimal Payments became an official partner of the Lotus Formula 1 team and won the award for Innovation in Payment Solutions at eGR‘s B2B awards in May.