Paysafe Group Plc (LON:PAYS) expects to report FY16 revenues and EBITDA ahead of our forecasts and expects organic growth of at least 10% in FY17. We have upgraded our revenue and EPS forecasts to reflect the new guidance and the recently announced share buyback. Although the share buyback means that net debt will reduce more slowly than previously forecast, we estimate that the company should still have headroom for further M&A.
FY16 revenues & EBITDA beat; positive FY17 outlook
Paysafe expects to report FY16 revenues of at least $1bn (compared to revenue guidance of $970-990m and consensus of $988m) and for EBITDA to reach $300m (guidance $287-293m, consensus $292m). This implies a c 30% EBITDA margin, marginally higher than our 29.6% margin forecast. In FY17, the company expects to generate low double-digit revenue growth on an organic basis, at current exchange rates. Paysafe is accelerating the development of a single technology platform, and will start to roll out modules through the course of the year.
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