Edison Investment Research - Optimal Payments (OPAY) Outlook: Focus shifts to integration

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Edison Investment Research

Outlook: Focus shifts to integration

H115 results confirm that business continues to be strong, and with the Skrill acquisition complete, the focus shifts to execution of targeted cost synergies and exploitation of the groupâ€™s broader reach. With a more balanced geographical and customer mix and operating in a structural growth industry, key to Optimalâ€™s success will be the ability to develop innovative services to keep ahead of larger payment industry peers.

24/09/2015 12 EN

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Optimal Payments

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Isle of Man

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Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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Flash note: H115 trading in line; acquisition on track

Optimal has confirmed that trading in H115 was strong and in line with expectations. Depending on the timing of regulatory approvals, the Skrill acquisition is likely to complete at end July/early August. On our illustrative estimates for the combined Optimal/Skrill business, the stock is trading on a FY16e P/E of only 10.7x, at a significant discount to its peer group. We would expect this discount to start to close on completion of the deal and as Optimal moves to a main market listing, and ultimately FTSE 250 inclusion.

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Update: Skrill completion moves a step closer

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Outlook: Focus shifts to integration

Flash note: H115 trading in line; acquisition on track

Update: Skrill completion moves a step closer

Dentsu Group - FY24 prospects weighted to H2

Record - AUME momentum and a sharper focus

Actinogen Medical - Funding in place through key catalysts

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