The payments provider said double-digit gains from its ecommerce solutions and classic digital wallets was a major contributor towards an 8% rise in revenue to $396.4m (€370.1m/£322.6m).
That figure was up 5% on a constant currency basis, excluding an $11.9m favourable impact from changes in foreign exchange rates.
Paysafe reaffirmed that it expects revenue to be between $1.59bn and $1.60bn during the full year. This outlook was increased after its success in H1, with projected full-year revenue originally being set between $1.58bn and $1.60bn.
Revenue from the Merchant Solutions segment increased 6% to $216.8m, led by double-digit growth from ecommerce solutions. This segment accounts for 54% of Paysafe’s income, around the same as a year ago.
Revenue from the Digital Wallets segment increased 12% to $182.9m on a reported basis and 5% on a constant currency basis. Paysafe said a decline from ecash solutions was more than offset by double-digit growth from classic digital wallets.
The business said this partly reflects its initiatives to increase consumer engagement and merchant checkout conversion rates. Growth from the Digital Wallets segment, it said, was also supported by new features and interest revenue on consumer deposits.
Operationally, Paysafe said it advanced its priorities across client experience and product innovation. This included continued improvement to branded wallet portfolio, enhanced customer journey and merchant checkout experience.
Paysafe growth inspired by strategic initiatives
Moving to earnings, net loss attributable to the business for Q3 was $2.5m.
Adjusted net income for Q3 increased 21% to $35.3m. Strong growth in adjusted EBITDA offset higher expenses related to depreciation and amortisation, interest and taxes.
Cost of services excluding depreciation and amortisation were up 8.7%, but there was an 8.3% drop in selling, general and administrative costs.
In total, adjusted EBITDA for the third quarter was $116.1m. This was an increase of 22%, compared to $95.5m in the prior year period.
Excluding a $3.4m favourable impact from changes in foreign exchange rates, adjusted EBITDA increased 18% compared to the prior year period.
Paysafe said adjusted EBITDA margin for Q3 increased 320 basis points to 29.3%, compared to 26.1% in 2022. This reflected its lower credit losses and operating leverage.
Bruce Lowthers, CEO of Paysafe, said: “These results reaffirm that the execution of our playbook is working and providing the foundation for us to deliver on our strategic initiatives and commitment to achieving our mid-term growth targets. I want to thank our extraordinary team for all their hard work as we continue to realign Paysafe in its pursuit of operational excellence.”
For the nine months to 30 September, revenue was up 6.3% to $1.19bn. Adjusted EBITDA grew by 11.3% to $336.9m.
Earlier this year, Paysafe announced the appointment of Nicole Carroll to the newly created role of chief strategy and innovation officer.
Carroll will be tasked with further developing the provider’s corporate vision and long-term growth strategy. She will lead on Paysafe’s product innovation and capital expenditure programmes.
Fanatics signs up Paysafe
Meanwhile, Paysafe has also integrated with Fanatics Sportsbook. The provider will offer Fanatic’s customers’ traditional card payments and other alternative payment methods in five US states.
Paysafe’s support of card transactions allows customers across Kentucky, Maryland, Massachusetts, Ohio and Tennessee to deposit and withdraw using debit cards and APMs as well as Paysafecash, the barcode-based online cash solution.
Zak Cutler, president of global gaming at Paysafe, said: “With the stature of the Fanatics brand in the sports world, we’re proud to partner with Fanatics Betting and Gaming to provide its customers with an unparalleled payments experience.
“We’re confident that our ‘all in one’ payment solution will exceed the transactional expectations of Fanatics Sportsbook’s diverse customer base.”
Original article: https://igamingbusiness.com/finance/paysafe-continues-2023-gains-as-it-announces-fanatics-deal/
