- Growth in North American market driving revenue increase
- Total dollars processed via North American Transaction Solutions segment up 37 percent to $1.62 billion
- Total dollars processed via International Transaction Solutions segment up 20 percent to $211 million
Net Element, Inc. (NASDAQ: NETE) has reported strong second quarter financial results, with net revenues of $32.45 million by June 2018, up nine percent from $29.7 million last year (http://ccw.fm/a3PM0). The financial services technology company, which develops multi-channel electronic payment solutions, has seen a significant increase in its North American business.
At a conference call to discuss the results, CEO Oleg Firer said, “The increase in net revenues is primarily due to organic growth in the North American Transactions Solutions segment, which experienced 15 percent growth over the prior year.”
He said this growth offset a predicted decrease in the company’s international transactions. “International Transaction Solutions segment experienced an expected decline of 19 percent due to elimination of branded content business, which accounted for $684,000 of net revenues in 2017. Normalizing elimination of branded content business resulted in 11 percent growth in the International Transaction Solutions segment and 6.5 percent across all segments over the same period of the prior year,” Firer added.
Among the highlights of the conference call presentation:
- Due to growth from Net Element subsidiary Unified Payments, the company’s total dollars processed through its North American Transaction Solutions segment increased by 37 percent to $1.62 billion up to June 2018.
- The total dollars processed through the International Transaction Solutions segment increased by 20 percent to $211 million.
- The total number of transactions processed up to June 2018 rose by 41 percent to 50.2 million. The North American Transaction Solutions segment saw an increase of 41 percent to 28.1 million, and the International Transaction Solutions segment saw an increase of 40 percent to 21 million.
Firer also mentioned key business highlights of the first half of 2018. “During the second quarter 2018, we launched Netevia Smart Vendor Payment Solutions, to enter a multi-trillion dollars global B2B payments market. We continue to work in Netevia, our future-ready omni-channel payments platform that was launched early this year. And we’re on track to launch services we set out to do this year, including blockchain technology solutions and value-added services,” he said.
The CEO noted that the Netevia payment platform has been expanded to target the $7.7 billion events industry, and the company recently launched subscription-based payment processing for small businesses. Netevia allows businesses to accept over 100 cashless payment methods in several currencies.
Net Element has also developed the Aptito system, a payment service created for the restaurant sector, and Unified Payments, a flexible mobile point-of-sale system that can be used by a wide variety of vendors, such as kiosk-type shops, limousine drivers, and tow truck and delivery drivers.
“Combined, these strategic initiatives are expected to add over $6.5 million in gross profit over the next four years. We’re on track to deliver another year of growth and financial improvement, and are pleased with our results as we continue to focus on long-term growth plans,” Firer said.
For more information, visit the company’s website at www.NetElement.com
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