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.

On October 22, 2010, the Company raised $6.03 million, before expenses, via a placing of 4,500,000 common shares. The net proceeds of the placing will provide additional working capital to maintain and enhance the growth of the Company’s business, as well as provide a source of repayment of debt.

The Company's Third Quarter Report, including its Consolidated Condensed Financial Statements (unaudited), as of and for the three and nine months ended September 30, 2010 and 2009 and as of December 31, 2009 have been posted on the OTCQX website at and on the Company’s website at

About Planet Payment

Planet Payment’s shares trade in the United States on the OTCQX under the symbol PLPM and in the UK on AIM under the symbols PPT for unrestricted Common shares and PPTR for Reg S Common shares.

Planet Payment is a leading international payment and data processor, providing banks and their merchants with innovative solutions to accept, process and reconcile payments, anytime, anywhere and in any currency. Our customer base of more than 45 acquiring banks and processors stretches from North America, to the Middle East, to Asia Pacific, including China, Hong Kong, Macau, Taiwan, Malaysia and India.

Planet Payment is headquartered in New York and has offices in Atlanta, Beijing, Bermuda, Delaware, London, Hong Kong, Shanghai and Singapore. Visit for more information on the Company and its services. For up-to-date information follow Planet Payment on Twitter at @PlanetPayment or join Planet Payment’s page on Facebook.

Forward-Looking Statements. Information contained in this announcement may include ‘forward-looking statements’. All statements other than statements of historical facts included herein, including, without limitation, those regarding the financial position, business strategy, plans and objectives of management for future operations of both Planet Payment and its business partners, are forward-looking statements. Such forward-looking statements are based on a number of assumptions regarding Planet Payment’s present and future business strategies, and the environment in which Planet Payment expects to operate in future, which assumptions may or may not be fulfilled in practice. Implementation of some or all of the new services referred to is subject to regulatory, or other third party approvals. Actual results may vary materially from the results anticipated by these forward-looking statements as a result of a variety of risk factors, including the risk that implementation, adoption and offering of the service by processors, acquirers, merchants and others may take longer than anticipated, or may not occur at all, regulatory changes and changes in card association regulations and practices; general economic risk and volume of international travel and commerce and others. Additional risks may arise with respect to commencing operations in new countries and regions of which Planet Payment is not fully aware at this time. See the Company’s Quarterly Report for the period, filed at for other risk factors which investors should consider. These forward-looking statements speak only as to the date of this announcement and cannot be relied upon as a guide to future performance. Planet Payment expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this announcement to reflect any changes in its expectations with regard thereto or any change in events, conditions or circumstances on which any statement is based.
Table 1. Reconciliation of Net Loss to Adjusted EBITDA
For the three and nine month periods ended September 30, 2010 and 2009
(in millions)
Three Months Ended Nine Months Ended
September 30 September 30




Net loss $ (0.4 ) $ (0.8 ) $ (2.7 ) $ (3.1 )
Interest expense, net 0.3 0.3 0.9 0.8
Depreciation and amortization 0.3 0.3 1.1 1.1
Stock compensation expense 0.2 0.2 0.6 1.0
Other non-cash expense 0.2 0.1
Adjusted EBITDA $ 0.4 $ 0.2 ($0.1 ) ($0.1 )


As of September 30, 2010 and December 31, 2009
September 30 December 31
2010 2009
(unaudited) (audited)
Cash and cash equivalents $ 1,142,860 $ 3,752,423
Other current assets   8,074,735     5,932,366  
Total current assets 9,217,595 9,684,789
PROPERTY AND EQUIPMENT, net 1,359,152 992,633
Intangible assets, net 5,298,967 4,873,263
Other assets   261,058     297,528  
TOTAL $ 16,136,772   $ 15,848,213  
Current liabilities 9,199,464 7,361,465
Long-term and convertible debt-less current maturities   9,132,308     9,036,402  
Total liabilities   18,331,772     16,397,867  
Stockholders’ (deficit):   (2,195,000 )   (549,654 )
TOTAL $ 16,136,772   $ 15,848,213  

See notes to consolidated condensed financial statements.


For the three and nine month periods ended September 30, 2010 and 2009

Three Months Ended September 30

Nine Months Ended September 30
2010 2009 2010 2009
(unaudited) (unaudited) (unaudited) (unaudited)
Multicurrency processing revenue $ 12,468,126 $ 8,506,885 $ 34,072,645 $ 22,571,928
Processing & other revenue   3,071,202     3,242,568     9,152,964     10,437,654  
Total Revenue 15,539,328 11,749,453 43,225,609 33,009,582
Multicurrency processing cost of sales 8,061,235 5,163,557 22,198,929 13,863,956
Processing & other cost of sales   2,443,577     2,470,807     7,292,739     7,538,820  
Total cost of sales   10,504,812     7,634,364     29,491,668     21,402,776  
Gross Profit 5,034,516 4,115,089 13,733,941 11,606,806
Total operating expenses   5,186,228     4,624,527     15,556,572     13,839,329  
Loss From Operations (151,712 ) (509,438 ) (1,822,631 ) (2,232,523 )
Total other expense   (297,572 )   (295,944 )   (878,720 )   (873,856 )
Loss before Provision for Income Taxes (449,284 ) (805,382 ) (2,701,350 ) (3,106,379 )
Provision for income taxes   -     -     -     -  
Net Loss $ (449,284 ) $ (805,382 ) $ (2,701,350 ) $ (3,106,379 )

See notes to consolidated condensed financial statements.


For the nine month periods ended September 30, 2010 and 2009

Nine Months Ended September 30
2010   2009
(unaudited) (unaudited)
Cash flows from operating activities:
Net loss (2,701,350 ) (3,106,378 )
Other cash flows from operating activities 1,466,819 1,922,276
Net cash used in operating activities     (1,234,531 )     (1,184,102 )
Cash flows from investing activities:
Capital expenditures (1,933,020 ) (2,044,681 )
Net cash used in investing activities     (1,933,020 )     (2,044,681 )
Cash flows from financing activities:
Proceeds from issuance of common stock 400,776 3,000,359
Proceeds from convertible debt and loans payable - 457,775
Proceeds from long term debt 157,212 -
Payment of capital-raising expense - (175,896 )
Repayment of long term debt - -
Net cash provided by financing activities     557,988       3,282,238  


Increase / (decrease) in cash and cash equivalents (2,609,563 ) 53,455
Cash and cash equivalents—beginning of period   3,752,423       246,848  
Cash and cash equivalents—end of period $ 1,142,860     $ 300,303  

See notes to consolidated condensed financial statements


For the nine month period ended September 30, 2010
Preferred Stock Common Stock
$0.01 Par Value— $0.01 par Value—
4,000,000 Shares Authorized 70,000,000 Shares
Series A Authorized
    Additional Cumulative Total
Shares Shares Paid-In Translation Accumulated Stockholders’
Issued   Par Value   Issued   Par Value   Capital   Warrants   Adjustment   Deficit   Equity (Deficit)

DECEMBER 31, 2009
2,243,750 $ 22,438 39,170,213 $ 391,701 $ 73,969,455   $ 1,517,983 $ 0 $ (76,451,230 )   (549,654 )
Stock issued 303,371 3,034 397,742 400,776
Warrants exercised 0
Options exercised 13,668 137 (137 ) 0
Value of warrants issued 87,607 87,607
Stock option expense 555,120 555,120
Cumulative Translation Adjustment 12,501 12,501
Net loss (2,701,350 ) (2,701,350 )

September 30 2010
2,243,750 $ 22,438 39,487,252 $ 394,872 $ 74,922,179   $ 1,605,590 $ 12,501 $ (79,152,580 ) $ (2,195,000 )

See notes to consolidated financial statements.

Management’s discussion and analysis of these results as well as the accompanying notes to consolidated condensed financial statements have been posted on the OTCQX website at and at

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