Planet Payment, Inc. : Planet Payment Announces Second Quarter 2013 Results

Quarterly Revenue increased 16%, Second Quarter Net Income $0.3 million and Adjusted EBITDA $1.3 million

LONG BEACH, N.Y., August 13, 2013 -- Planet Payment, Inc. (NASDAQ:PLPM) (LSE:AIM:PPT), a leading provider of international payment and transaction processing and multi-currency processing services, announced today its  results for the second quarter ended June 30, 2013.

Financial Highlights for the Quarter Ended June 30, 2013

• Net revenue for the period increased approximately 16% to $11.8 million compared to $10.1 million in the second quarter of 2012.
• Consolidated gross billings increased 11% to $30.4 million compared to $27.4 million in the second quarter of 2012. (See Table 3 for explanation of this metric).
• Gross foreign currency mark-up increased 8% to $26.1 million compared to $24.1 million in the second quarter of 2012. (See Table 3 for explanation of this metric).
• Processing services revenue increased 32% to $4.3 million compared to $3.3 million in the second quarter of 2012.
• Net income for the period was $0.3 million compared to a net loss of $1.2 million in the second quarter of 2012.
• Adjusted EBITDA for the period was $1.3 million compared to $0.1 million in the second quarter of 2012. (See Table 1 for reconciliation of net income to Adjusted EBITDA).

Operational Highlights for the Quarter Ended June 30, 2013

• Total active merchant locations increased by 30% to approximately 44,000 (See Table 3 for explanation of this metric).
• Total settled dollar volume processed increased 20% to $1.7 billion and total settled transactions processed increased 34% to 14.9 million. (See Table 3 for explanation of these metrics).
• Total acquirer and processor customers increased to 60 based on roll outs in U.S.A., Myanmar and Greater China.
• Launched Pay in Your Currency® at Billabong locations and additional ATMs with Vantiv and Payment Alliance International across the United States, as well as additional hospitality solutions for customers in Canada and Mexico.

"The second quarter showed increased revenue growth and profitability and we are pleased with the results"said Philip Beck, Chairman and CEO of Planet Payment, Inc. "Although we have seen some weakness in certain areas, we have seen positive trends this quarter in particular in the increase in payment processing revenue, which we believe will continue to grow in the second half of 2013 and beyond. We are focused on growing our revenue from existing products and customers.  In addition, we continue to work with our customers on multi-currency processing implementations in new markets such as Indonesia, Mexico, and Brazil, and we expect to be able to report further developments in those markets as the year progresses." 

Outlook for Fiscal Year 2013

We have seen weakness in our multi-currency revenues, particularly in the APAC region.  This resulted from continued change in international travel trends and softness in some of our customers' portfolios in the APAC region in particular.  If these trends persist for the rest of the year, this may impact the growth in our multi-currency revenues during 2013.  Some of our customers, particularly in the Americas, have been slower than anticipated in completing technical implementations or roll-outs to their customer portfolios, which may also impact 2013 results.  Accordingly we are adjusting our guidance for 2013 to reflect these uncertainties, as follows:

• Net revenue estimated to be in the range of $48.0 million to $50.0 million.
• Net income estimated to be in the range of $1.0 million to $2.9 million.
• Adjusted EBITDA estimated to be in the range of $5.4 million to $7.4 million. (See Table 2 for reconciliation of prospective net income to Adjusted EBITDA).
• Fully diluted earnings per share estimated to be in the range of $0.02 to $0.05 based upon 56.0 million fully diluted common shares outstanding.

Based on the planned multi-currency implementations during the second half of 2013 and the expected growth in our processing services, we are anticipating revenue growth in excess of 20% for 2014.  We expect this revenue growth will result in increasing profitability, as we continue to demonstrate the leverage in our model.

Conference Call

The Company will host a conference call to discuss second quarter 2013 financial results today at 5:00 pm New York time.  Philip Beck, Chairman and Chief Executive Officer, and Robert Cox, Chief Financial Officer will host the call.  The call will be webcast live from the Company's investor relations website at http://ir.planetpayment.com/.  The conference call can also be accessed live over the phone by dialing [phone], or for international callers [phone].  A replay will be available approximately two hours after the call concludes and can be accessed on our website or by dialing [phone], or for international callers [phone], and entering the conference ID 413496.  The replay will be available until our next earnings call on our website or via telephone until Tuesday, August 20, 2013. 

Additional analysis of the Company's performance can be found in the "Management's Discussion and Analysis of Financial Condition and Results of Operations," included in the Quarterly Report on Form 10-Q to be filed at www.sec.gov and posted on the Company's investor relations website.

Notice Regarding 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 set forth in "Outlook for Fiscal Year 2013" and those regarding the financial position, business strategy, plans, trends, and objectives of management for future operations of both Planet Payment and its business partners, financial growth, estimated net revenue, net income, Adjusted EBITDA, diluted earnings per share, estimated fully diluted common shares outstanding, future service launches with customers in existing and new markets and new initiatives and customer pipeline 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, changes in domestic and international economic conditions and changes in 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 on Form 10-Q, filed at www.sec.gov 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.

About Planet Payment

Planet Payment is a leading provider of international payment processing and multi-currency processing services. We provide our services in more than 20 countries and territories across the Asia Pacific region, North America, the Middle East, Africa and Europe, primarily through our 60 acquiring bank and processor customers. Our point-of-sale and e-commerce services help merchants sell more goods and services to consumers, and together with our ATM services are integrated within the payment card transaction flow enabling our acquiring customers, their merchants and consumers to shop, pay, transact and reconcile payment transactions in multiple currencies, geographies and channels.

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

Contacts:

Planet Payment, Inc. Robert Cox (CFO)	Tel: + 1 516 670 3200 www.planetpayment.com
Redleaf Polhill (UK PR for Planet Payment) Emma Kane / Rebecca Sanders-Hewett / David Ison	Tel: [phone] [e-mail]
ICR (USA IR for Planet Payment) Don Duffy / Dara Dierks	Tel: [phone]

Canaccord Genuity Ltd (Nomad for Planet Payment)

Simon Bridges / Andrew Chubb                                                 Tel: [phone]

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