Planet Payment, a leading provider of international payment processing and multi-currency processing services, will delay its results for the six month period ended June 30, 2011, which will not be issued by September 30, 2011. In accordance with AIM market policy, the Company has requested the AIM market of the London Stock Exchange to temporarily suspend trading in its shares until such results are issued. OTC Markets Group, Inc. has indicated that they will temporarily remove the Company from the OTCQX tier but the Company’s shares will continue to trade on the OTC Markets Pink Link system. As of October 1, 2011 the Company will be listed on the “OTC Pink No Information” tier. However as soon as the Company files its financial statements and report for the six month period ended June 30, 2011, the Company’s shares will resume trading on AIM and the Company will be restored to the OTCQX tier.
During the process of preparing the Company to become a reporting company under U.S. securities laws, the Company, in consultation with its independent registered public accountant, Deloitte & Touche LLP, is reconsidering the presentation of its reported revenues. The Company has historically reported revenue, as total billings, inclusive of revenue share amounts paid to acquiring banks and processors, interchange, assessments and other fees paid by the Company in connection with processing services. The revenue share amount paid to acquiring banks and processors, interchange, assessments and other fees have been shown as a cost of revenue. The Company is considering whether to present revenue net of certain of the cost of revenue items noted above. If a change in revenue and cost of revenue presentation occurs it is not anticipated that this alone would have any impact on the Company’s net income (loss), Consolidated Balance Sheets, Consolidated Statements of Cash Flow and Consolidated Statements of Stockholders’ Equity for any period.
The results for the six month period ended June 30, 2011are being delayed, in order for the Company to complete its examination of this matter. The Company is working diligently to finalize and issue its financial statements for this period as soon as practicable. It is possible that as a result of the examination, the Company will restate financial statements for certain prior periods, which may give rise to other issues that impact the Consolidated Financial Statements. The Company is not currently aware of any such other issues, which would have a material impact on its operating results, nor on the financial condition of the Company.
While the Company is not in a position to announce its results for the first half of 2011 at this time, in the interest of transparency for investors and other stakeholders, the Company is providing the information below, which the Company does not expect to be impacted by the presentation issues mentioned above.
The Company is providing the following operating metrics, on a basis consistent with past periods for the six months ended June 30, 2011:
• Total multi-currency transactions processed increased 62% to approximately 4.9m (H1 ’10: 3.0m).
Planet Payment’s increase in transaction processing volumes was primarily driven by increases in active merchant locations. Planet Payment’s customers have continued to roll out our multi-currency solutions as reflected by a 66% increase in active multi-currency merchant locations over H1’10. During the first half of 2011 the total number of active merchant locations continued to grow, increasing by approximately 100% over H1 ’10.
During the first half of 2011, the Company continued to expand its acquiring customer base in both existing and new markets, in particular announcing agreements with Global Payments to provide multi-currency services in the United States and Canada, complementing the existing agreements in the Asia Pacific region. In March, the Company announced the expansion of its agreement with Vantiv (formerly Fifth Third Processing Solutions), to offer Pay in Your Currency on ATMs throughout the United States.
In April 2011, the Company announced that investors led by Camden Partners had converted their entire approximately $9.0 million of convertible notes into an aggregate of 4,049,776 shares of common stock. In addition, the Company issued 425,000 shares of common stock in lieu of cash payments for accrued interest and a prepayment fee negotiated at the time of conversion. This transaction strengthened the Company’s balance sheet and will eliminate related future interest expense.
In May 2011, the Company launched the MICROS Payment Gateway, which it operates under a worldwide license from MICROS Systems, Inc., to support payment solutions for merchants using MICROS point of sale and property management systems in the hospitality and retail industries.
Since the beginning of 2011, the Company has rolled out services in the United Arab Emirates, the Philippines and other Asia Pacific countries launched in 2010 and with additional acquirers in Canada. Network International announced in July that over 3,500 merchant locations in the UAE have signed agreements to offer the Company’s Pay in Your Currency service. Planet Payment also continues to benefit from a robust new business pipeline and is currently working to implement additional acquiring bank, processor and merchant solutions.
During the first half of 2011 the claims under our “Time of Transaction Foreign Currency Conversion” patent applications have been found to be patentable in Singapore and Australia and we expect the patents in those countries to be granted shortly. These are in addition to the patents previously granted in the United States and other countries.
About Planet Payment
Planet Payment is a leading provider of international payment processing and multi-currency processing services. We provide our services in 16 countries and territories across the Asia Pacific region, North America, the Middle East, Africa and Europe, primarily through our more than 45 acquiring bank and processor customers. Our point-of-sale and e-commerce services help merchants sell more goods and services to consumers, and are integrated within the payment card transaction flow enabling our acquiring customers to process and reconcile payment transactions in multiple currencies, geographies and channels. We are a registered third party processor with the major card associations and operate in accordance with industry standards, including the Payment Card Industry, or PCI, Security Council’s Data Security Standards.