Adyen shares are higher Wednesday, after the Dutch payment processor reported a 75% increase in its first half net profits. The business processes payments online and in-store for a number of high profile clients, including Netflix, Facebook, eBay and Dunkin Donuts.
By 1605 BST, Adyen shares were 4.62% higher at €573.40. The stock has been moving broadly downwards during recent weeks.
Adyen’s H1 performance
The Dutch-based payments processing firm said earlier Wednesday that its H1 profits rose 74.6% to €48.2 million, from the same period a year earlier. Processed volume, meanwhile, grew 43.1% to €70 billion, while net revenues rose 67.3% to €156.4 million.
Adyen also said its EBITDA surged 83.1% to €70.3 million, from $38.4 million in H1 2017.
“We continued our strong and profitable growth in the first half of this year, ending June 30, 2018, helping our merchants grow across channels and geographies,” said Adyen CEO, Pieter van der Does, in a letter to shareholders.
“We have traditionally grown our business by solving payments-related issues for global enterprise merchants, which we define as large multinational corporates. This segment continued to grow significantly in the first half of this year, through the organic growth of existing merchants, an increased share of wallet with existing merchants, and the addition of new merchants to the platform,” the letter added.
Outlook remains unchanged
Adyen said that it’s positive H1 earnings report was due to a robust performance for its existing clients, as well as the new clients it has added during the period.
And, the Dutch-based business is continuing to anticipate it will achieve full-year net revenue growth of at least 40%. Meanwhile, it is targeting a stronger EBITDA performance, of 55% growth.
Adyen’s strength is in its single-platform payment processing solution, something that an increasing number of merchants are apparently impressed with, as they engage with the business.
Indeed, eBay announced earlier this year its intention to ad Adyen to its site this year. The Dutch payments form will then replace PayPal as eBay’s primary payment processor, during 2019.