UK-based payment aggregator Earthport has been beset with troubles in 2018. It hasn’t quite delivered the growth that its board and shareholders have expected, in fact transaction volume in the financial year ending June 2018 (FY2018) had been lower than a year ago and the implementation of a number of client projects had also been delayed.

Revenue in FY2018 grew by a lower than expected 5.3%, with approximately 10.5 million transactions as compared to 11.0 million a year ago. Transactional value was lower at $16.9 billion as compared to $17.5 billion in (FY 2017: $17.5 billion). The adjusted gross margin decreased to 67.1% from FY 2017’s 68.3%, which management attributed to increased network delivery costs, geographical mix of transactions and the associated differences in transaction price per corridor. Adjusted loss for the year widened to £4.8 million ($6.14 million) from £2.9 million ($3.71 million) the year before.

The less than desired results have precipitated a number of management changes. Then CEO and executive chairman, Hank Oberoi, was replaced by Amanda Mesler, interim CEO Phil Hickman and former chairman was also recently replaced by Sunil Sabharwal as non-executive chairman and Mike Steinharter, a 22-year IBM veteran was recruited to the newly created role of chief commercial officer to drive global sales and marketing.

Despite this, the company’s cash balance as at 30 June 2018 was a healthy £28.3 million ($36.2million), enabling the company to continue investing strategically where needed. During the financial year, Earthport has continued to invest in its sales and relationship management teams to support its expanding network and clients, which now covers 88 countries, a 35% increase in international routes during the year.

Building scale

Steinharter sees the ...

Categories:

Keywords:Transactional Value, Payment, Card, Wallet, Technology, API

UK-based payment aggregator Earthport has been beset with troubles in 2018. It hasn’t quite delivered the growth that its board and shareholders have expected, in fact transaction volume in the financial year ending June 2018 (FY2018) had been lower than a year ago and the implementation of a number of client projects had also been delayed.

Revenue in FY2018 grew by a lower than expected 5.3%, with approximately 10.5 million transactions as compared to 11.0 million a year ago. Transactional value was lower at $16.9 billion as compared to $17.5 billion in (FY 2017: $17.5 billion). The adjusted gross margin decreased to 67.1% from FY 2017’s 68.3%, which management attributed to increased network delivery costs, geographical mix of transactions and the associated differences in transaction price per corridor. Adjusted loss for the year widened to £4.8 million ($6.14 million) from £2.9 million ($3.71 million) the year before.

The less than desired results have precipitated a number of management changes. Then CEO and executive chairman, Hank Oberoi, was replaced by Amanda Mesler, interim CEO Phil Hickman and former chairman was also recently replaced by Sunil Sabharwal as non-executive chairman and Mike Steinharter, a 22-year IBM veteran was recruited to the newly created role of chief commercial officer to drive global sales and marketing.

Despite this, the company’s cash balance as at 30 June 2018 was a healthy £28.3 million ($36.2million), enabling the company to continue investing strategically where needed. During the financial year, Earthport has continued to invest in its sales and relationship management teams to support its expanding network and clients, which now covers 88 countries, a 35% increase in international routes during the year.

Building scale

Steinharter sees the ...

Categories:

Keywords:Transactional Value, Payment, Card, Wallet, Technology, API