Paysafe predicts 2016 revenue to surpass market expectations

After a strong second half, the FTSE 250-listed group said it now expects its full-year revenue to exceed US$1.0bn, having previously upgraded its guidance to a range of US$970min to US$99mln.

The company also said it anticipates its 2016 underlying earnings (EBITDA) to "reach" US$300mln.

Paysafe said a strong revenue performance in the second half of 2016 also gives it confidence for its outlook in 2017, when it expects "low double-digit organic revenue growth".

Joel Leonoff, Paysafe’s president and chief executive officer said: "We have delivered another excellent financial performance and expect to surpass USD1 billion in revenue, an impressive milestone of which we are extremely proud. Our ongoing momentum underpins our confidence in our growth prospects for 2017".

He added: “We are well prepared for the additional levels of customer due diligence expected as part of forthcoming regulatory requirements, including anti-money laundering legislation in Europe. Operating amid regulatory change is simply business as usual for Paysafe,"

In mid morning trading, Paysafe shares were up 0.2%, or 0.6p at 397.4p.

Paysafe saw a sharp drop in its shares in the middle of December which traders attributed to a negative report from a US short selling firm called Spotlight Research.

Responding to that report, Paysafe said it was aware of the Spotlight Research note and confirmed that “all material information in the report is either factually inaccurate or has been previously disclosed.”

The FTSE 250-listed company also pointed out that Spotlight “has disclosed a potential short interest benefiting from any weakness in Paysafe's share price.”