The provider of payment processing services for the online gaming industry announced FirePay wallet revenue increased by 66% over the second quarter of 2005 to $18.9 million in the second quarter of 2006, and by 83% over the first half of 2005 to $37.7 million in the first half of 2006. FirePay wallet volume increased 48% over the second quarter of 2005 to $250 million.
Gross profit, defined as revenue less transaction processing costs, improved as a percentage of revenues to 67.3% in the second quarter of 2006 from 58.9% in the second quarter of 2005. For the first half of 2006, gross profit improved to 65.8% from 58.5% in the first half of 2005.
Profit before tax and exceptional items increased by 65% over the second quarter of 2005 to $11.9 million in the second quarter of 2006. For the first half of 2006, profit before tax increased by 76% over the first half of 2005 to $23.4 million.
Net profit increased by 77% over the second quarter of 2005 to $7.8 million for the second quarter of 2006. For the first half of 2006, net profit increased by 98% over the first half of 2005 to $16.0 million.
Commenting on the results, Chief Executive Ben Dalfen said: “We are very pleased with the continued improvement of our operating margin, which demonstrates our ability to implement strategic initiatives focused on profitability such as managing the risk associated with our FirePay guarantee offering, migrating various processing accounts from Optimal Payments and optimising our fee structure. Our second quarter results reflect the expected seasonal effects within the online gaming industry. For the remainder of the financial year, we intend to continue to execute our strategy of expanding FirePay into new geographies, supporting our merchant base with the innovative features they require and strengthening the FirePay customer service offering in all areas.”
Dalfen also said the group looks to the remainder of 2006 with confidence and will focus on expanding the its presence beyond the current North American base, with initial expansion to take place in targeted European countries.
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