Earthport gross profit rises

Earthport reported gross profit rose by 33.8% to £9.9m (H1 FY 2016: £7.4m) in the six months to 31 December 2016.

FINANCIAL HIGHLIGHTS

- Revenues grew by 34.9% to £14.3m (H1 FY 2016: £10.6m)

- Transactional revenues comprised 95% of H1 FY 2017 total revenues

- Gross profit margin decreased by 0.6% to 69.2% (H1 FY 2016: 69.8%)

- Adjusted gross margin fell by 3.1% to 70.4% (H1 FY 2016: 73.5%), due to increases in network costs but met management expectations and those achieved in the financial year ended 30 June 2016

- Adjusted gross profit increased by 29.5% to £10.1m (H1 FY 2016: £7.8m)

- Administrative expenses was 7.8% lower at £13m (H1 FY 2016: £14.1m) and represent 90.9% of revenues (H1 FY 2016: 133%)

- Adjusted loss before tax declined by 52.2 % to £3.2m (H1 FY 2016: £6.7m)

- Loss before tax slumped by 41.1% to £3.3m (H1 FY 2016: £5.6m)

- Loss per share of 0.61p (H1 FY 2016: 1.3p)

- Cash Balance at 31 December 2016 amounted to £11.4m, compared to £14.4m at 30 June 2016

OPERATIONAL HIGHLIGHTS

- Transactions and payment volume grew significantly in the period with December 2016 setting a record month in the company's history

- Number of transactions reached 5 million, a growth of approximately 85% over the prior year period (H1 FY 2016: 2.7 million)

- Payment volume increased by 97% to $7.8bn (H1 FY 2016: $3.95bn)

- Revenue per transaction in the period was £2.70 (H1 FY 2016: £3.26)

- Bank of America Merrill Lynch (BofAML) CashPro offering using the Earthport network went live in February 2017 as part of the broader strategic relationship with Bank of America Merrill Lynch

- In November 2016, Earthport announced the approval from the Reserve Bank of India to operate cross-border payment services for banks in India

- Axis Bank, India's third largest private sector bank is the first bank in the region to connect with Earthport

At 10:44am: (LON:EPO) Earthport PLC share price was -2.25p at 24p