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Planet Payment Reports Third Quarter 2010 Results

Planet Payment, Inc. (USA: OTCQX: PLPM, UK: LSE:AIM: PPT and PPTR), a leading international payment and data processor, announced on November 9, 2010 its results for the three and nine month periods ended September 30, 2010.

The third quarter of 2010 was another period of solid growth. Total revenue was up 32% to $15.5m (Q3‘09: $11.7m), with multi-currency revenue up 47% to $12.5m (Q3‘09: $8.5m). Gross profit for the period increased 22% to $5.0m (Q3‘09: $4.1m). Adjusted EBITDA for the quarter increased to $0.4m from $0.2m in Q3‘09. On a GAAP basis, net loss narrowed by 44% to ($0.4m) compared to the Q3‘09 loss: ($0.8m), and also narrowed by 47% sequentially over the prior quarter (Q2’10 loss ($0.7m). See Table 1 for reconciliation of net loss to Adjusted EBITDA.

For the nine month period ended September 30, 2010 (“YTD‘10”), total revenue increased 31% to $43.2m (YTD‘09: $33m), with multi-currency revenue up 51% to $34.1m (YTD‘09: $22.6m). Gross profit for the period increased 18% to $13.7m (YTD‘09: $11.6m). Adjusted EBITDA loss for the nine month period approached breakeven to ($0.04m) compared to a YTD‘09 loss of ($0.04m). On a GAAP basis, net loss narrowed by 13% to ($2.7m) compared to a YTD‘09 loss of ($3.1m). See Table 1 for reconciliation of net loss to Adjusted EBITDA.

Planet Payment’s revenue growth reflects an increase in transaction processing volumes primarily driven by increases in active merchant locations as well as improving economic conditions. The Company’s 46 banking and processing customers have continued to roll out Planet Payment’s solutions in sixteen countries as reflected by the addition of 3,800 active merchant locations since Q3’09, a 39% increase. During the third quarter of 2010, the Company began activating the merchant pipeline from newly signed acquirers in Canada, the United Arab Emirates, Philippines, Singapore, Brunei, Sri Lanka, the Maldives and South Africa, adding over 1,600 new merchant locations in these countries alone.

“Our services help acquirers open new sales channels, merchants sell more goods and services and cardholders enjoy informed choice and transparency at the point-of-sale,” commented Philip Beck, Chairman and CEO of Planet Payment Inc . “As a result of our efforts this year to roll out our innovative products to new customers and taking into account the customary fourth quarter seasonal uplift in our business, we look forward to increased revenue and gross profit, resulting in positive cash flows and adjusted EBITDA for the balance of 2010.”

During the third quarter, the Company continued to broaden and enhance its services, including:

  • Expanding debit card processing with the certification of Maestro® for the Middle East and Africa, complementing Planet Payment’s support of VISA® Debit and Interac® in Canada
  • Adding EMV support for online PIN entry for the Middle East and Africa, building on the Company’s existing support of EMV for the Asia Pacific, Canada and Europe regions
  • Signing agreements to integrate to the iPAY gateway a suite of enhanced, e-commerce, merchant fraud detection and prevention services.

Planet Payment’s momentum continues to build with a strong pipeline of new prospects for our multi-currency processing services in existing and new regions, including the Middle East, South Africa and Latin America.

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