Edison Investment Research - Optimal Payments (OPAY) Update: Skrill completion moves a step closer

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Edison Investment Research

Update: Skrill completion moves a step closer

Optimal has raised proceeds of Â£452m from the rights issue. The Skrill acquisition is on track, with completion expected in early Q315, and we believe there is a strong likelihood of the stock joining the FTSE 250 later in Q3. On initial calculations, the combined group looks set to grow revenues to $800m and EBITDA margins to 30% by FY16 as cost synergies are realised. The stock is trading at a discount to peers based on our initial illustrative estimates for FY16.

05/05/2015 6 EN

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Optimal Payments

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Isle of Man

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Edison Investment Research

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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.

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Update: Skrill completion moves a step closer

Outlook: Focus shifts to integration

Flash note: H115 trading in line; acquisition on track

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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