Paysafe Group's (LON:PAYS) H117 results show that organic constant currency growth is moderating to low double-digit rates, after an exceptional period of growth in 2016. Profitability was strong during the period, helped by the strong growth and margins of the Asia Gateway business. The sale of Asia Gateway and the acquisition of MCPS will both help reduce the group’s exposure to online gambling, and MCPS will strengthen the group’s position in bricks and mortar payment processing.
Growth moderates in H117
Paysafe saw growth moderating across all divisions, with reported revenue growth of 11% and organic constant currency growth of 12% (H116: 20%, H216: 21%). Once the major merchant is excluded, this moderated to 10%. The company achieved an EBITDA margin of 31.4%, better than the company’s (pre-bid) guidance for a margin of at least 30.1%. The tax rate has trended up, as expected, as more revenues were generated in higher tax regions. Adjusted EPS increased 23% y-o-y to 25c. The company ended H117 with net debt (including deferred financing fees) of $259.9m.
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