
Joel Leonoff is looking forward to more acquisitions and growth in Optimal Payments’ future.
Optimal Payments has found itself with a bigger presence in American markets over the year that is past owing to increased usage of brands like Neteller in regulated markets.
That seems to have paid off for the company, as revenues are up significantly more than 40 percent for the business into the first 50 % of 2015 whenever compared to the period that is same 2014.
Overall, Optimal Payments collected $223 million in profits during initial half a year with this year.
That’s up from just over $159 million year that is last a substantial gain for the payment processing company.
Much of that revenue increase was due to improvement in its straight through processing (STP) department, which grew by more than 47 percent year-over-year.
That was mostly as a result of the purchase of two businesses based into the United States, Meritus and GMA, both of which were acquired late in 2014.
The business’s stored value services, chiefly Neteller, additionally saw improvement, growing a bit more than 20 % annually to bring in $49.8 million in revenue.
North American Operations Get Focus
The changing focus associated with the company could be seen in the local figures posted by Optimal in the first half of all the last two years.
In the first half of 2014, united states operations play more chilli slot machine online made up slightly below 16 per cent of the organization’s revenues; in the same period this season, that share had increased to 43 percent, which makes it the largest section of the business’s business.
‘ We now have proceeded to supply on a number of our key objectives, notably the integration of the united states businesses we acquired year that is last have dramatically added to the growth of the Group and recently completion of this acquisition of Skrill which is set to transform business on a amount of levels,’ stated Optimal Payments CEO Joel Leonoff.
Leonoff is chatting in regards to the reverse takeover of Skrill, a €1.1 billion ($1.24 billion) purchase that changed the business enterprise by simply making it a clear leader in the entire world of online gambling payment processing.
In the last 12 months, the company that currently managed Neteller purchased the prepaid voucher business Ukash and Skrill, placing three of the biggest brand names in the industry under its banner.
More Acquisitions Feasible for Optimal
But that may not be the final end of the acquisitions for Optimal. Based on Leonoff, the company is currently in the procedure of searching to get more potential candidates to purchase as time goes by.
‘that we feel are accretive to our shareholders and add a lot of value to our business,’ Leonoff said as we come out of the tail-end of the integration with Skrill, we want to be ready to look at other companies. ‘we need to find companies that may go the dial a bit and make certain they add a material amount of income and profit. even as we approach $1 billion in revenue,’
The desire for continued growth comes while Optimal Payments is wanting to be admitted towards the London Stock Exchange as well as the FTSE 250 index. The business’s stock rose by about 8 percent after announcing its results for the first half of 2015.
Analysts expect Optimal’s sales to increase significantly within the 2nd 1 / 2 of 2015 because of the acquisition of Skrill. That, along with relatively lower costs thanks to synergies between their platforms that are various should see profits rise also.
Macau Gambling Still Struggling Amidst Crackdowns and Downturns
Macau gambling remains struck by the anti-money and economy laundering moves. Can new resorts buck the trend? (Image: AP)
Macau’s gambling industry is continuing to have a massive hit from anti-corruption moves through the Chinese mainland and an economy that is weakening.
Arrests were made in Macau this week as part of an endeavor to halt cash that is illegal into the gambling mecca, while during the same time a pact was signed between the Macau Monetary Authority and the individuals’s Bank of China that could see more influence exerted on Macau by mainland banking institutions.
The moves come at the same time when Macau casinos are experiencing a downturn that is unprecedented.
Anti-corruption moves by China’s president, Xi Jinping, in conjunction with a smoking ban in Macau and A chinese economy that’s rapidly in the slide has made the perfect storm for Macau’s casinos.
China’s stockmarket collapse has led to a weak renminbi that is chinese which in turn has ramped up the cost for mainland gamblers to relax and play in Macau.
17 Arrested in Money-Laundering Crackdown
This week, 17 individuals were arrested in Macau after authorities found cash that is illegal through the town’s pawn shops.
The economic downturn in the gambling hub is leading the authorities to ramp up efforts to stem the tide of illicit money, even in a city where money-laundering is no complete stranger.
Macau police seized UnionPay card terminals and records of illegal cash transactions well worth around $1.7 million. Reuters have reported a leap in gambling-related crimes for 2015 so far, up to 34.5 % from 22.6 % this time around final year.
At the same time, VIP ‘whales’ who have remained away from Macau because the crackdowns is crippling the casinos’ businesses.
‘The reduced number of big VIP gamblers and difficulty that is increasing getting back gaming debt for many creditors has generated the rise in these criminal activity rates,’ said Macau’s secretary for security, Wong Sio Chak.
Diversification ‘Not Working’
Section of China’s plan for Macau is always to transform it into an entertainment that is worldwide, not entirely reliant on gambling for revenue.
Because of this, major casino chains like James Packer’s Melco Crown, are busy trying to diversify into ‘theme park’-style resorts.
Melco’s Studio City features a Hollywood theme, with a hotel based on Gotham City, Asia’s ferris wheel that is biggest and contains also secured the services of Leonardo di Caprio and Martin Scorsese on promotional duties.
However, therefore far the moves aren’t working. According to Fitch reviews, non-gambling activities like nightclubs, restaurants and shows accounted on the cheap than 10 % of total Macau revenues a year ago.
There is certainly an amount of pessimism over whether non-gambling ‘entertainment’ is going to do the trick.
Melco’s CEO, Lawrence Ho, told the Macau Daily Times:
‘ Non-gaming doesn’t make any cash and it will never make hardly any money.
For the foolish people out there that think non-gaming is going to save Macau’s day, it is not.’
Plenty on Xi’s Plate
The fallout from Asia’s stockmarket collapse this week will really be believed in Macau, and casino bosses there will likely be vanishing within their shelters in order to avoid the fallout.
Some of whom are opposed to his anti-corruption crusade unlike some of his predecessors, President Xi Jinping has taken a lot of responsibility for economic decisions in China, and should he be blamed for the turmoil it could spur opposition within his party.
Xi visits the US in September, and he should have plenty more than a slumping Macau gambling industry on his plate when he arrives while he will almost certainly be given the presidential treatment (despite Donald Trump’s calls for the beleaguered Chinese President to be served a Big Mac instead of a state dinner.
Macau Casinos Consider Abduction Insurance as Kidnappings Increase
Macau’s Secretary for Security Wong Sio-chak says the protection situation in Macau is stable, despite an increase in kidnappings. (Image: ggrasia.com)
As if Macau doesn’t have sufficient problems lately, a fresh and trend that is frightening the Chinese gambling mecca might be maybe not going to help business any, either.
An increase in the kidnapping of high rollers from Macau’s top hotel resorts within the last year has resulted within the province’s casino operators taking out special insurance policies to mitigate the risk of high-profile abductions.
Macau police have said that the number of illegal detentions, which largely involve the forced collection of gambling debts, significantly more than doubled in the first 6 months with this year.
Authorities reported that as 170 people were held against their will throughout that period, and it’s likely that a lot more instances went unreported.
Many attribute this to economic stress on Macau from mainland China. Beijing’s visa limitations on visitors to the gambling hub, because well as a slowing Chinese economy, is hurting the earnings of Macau’s moneylenders and junket operators.
14K Triad Involvement
Limits on the amount of money visitors can bring from the mainland has meant that those willing to lend them money have, until recently, done a trade that is thriving nevertheless the squeeze on this variety of business, much of which is believed to have been infiltrated by 14K Triad organized crime groups, is driving up the enforced collection of gambling debts.
Talking with the South China Evening Post, Ashley Coles, whom is an assistant director of credit, political, and protection risks at Jardine Lloyd Thompson, said that all the casino groups in Macau have expressed interest in professional danger insurance coverage.
‘Word of mouth may lead up to a trend of a desire for the policy, safety and the security,’ he said. ‘All the casino that is major resort chains will have looked into this. Certainly there exists a correlation between mainland China, Macau therefore the interest and purchase of this form of policy,’ he added.
Business is Business
According to Cole, policies often cover the deployment of a negotiator to diffuse kidnapping disputes, aswell as protection for the gambling enterprises from potential lawsuits brought by victims or their families.
Earlier in the day this year, Macau’s Secretary for protection Wong Sio-chak played straight down worries of the criminal activity wave into the area, which has additionally reported an enhance in arson and document forgery.
‘[The numbers] still [do] not provide sufficient proof that the current adjustment into the gaming industry has affected Macau’s social public security,’ he insisted, adding that the province’s security situation ended up being nevertheless stable.
However, a ‘casino industry source’ close to the South Asia Morning Post who wanted to remain nameless felt otherwise.
‘Business is business for these [debt collectors], and it another way,’ the source said if they can’t get their pound of flesh one way, they’ll get.