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Payments processor Adyen's profit boosted by US volumes

Payments processor Adyen's profit boosted by US volumes

FILE PHOTO: The Adyen logo is seen at the reception desk of the company's headquarters in Amsterdam, Netherlands August 24, 2018. Picture taken August 24, 2018. REUTERS/Eva Plevier/File Photo

AMSTERDAM : Adyen NV, the Dutch company that helps to process payments for Netflix, Facebook and Uber, on Thursday beat market expectations with a 65per cent jump in first-half core profit, citing higher volumes and strong growth in North America.

Adyen reported adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of 272 million euros (US$318 million), for the six months ended June 30, ahead of the 252 million euros forecast by analysts, Refinitiv data showed.

Net revenue rose 46per cent from the same period a year earlier to 445 million euros, also ahead of an analysts' forecast of 425 million euros.

Adyen confirmed its medium-term targets of a compounded annual growth rate of around 25per cent-30per cent.

Higher volumes at existing customers, such as McDonald's, accounted for most of its increase in volume, it said. Total Adyen volumes were up 67per cent to 216 billion euros from a year earlier.

"We are solidly executing our strategy in a space that is consistently buoyed by macroeconomic trends ... many of which were accelerated by COVID-19," Adyen said in a statement, citing the shift toward online retail and the declining use of physical cash.

The pandemic has also driven a change, likely to be lasting, in the way consumers collect the goods they buy as well as how they pay for them.

"Ordering ahead, curbside pick-up, and in-store purchases with self-service checkouts will continue to be part of our everyday reality," said Adyen, which also helps vendors handle payments in stores and online.

Shares were up 1per cent to 2,410 euros by 0713 GMT, and up 26per cent in the year to date.

(US$1=0.8563 euros)

(Reporting by Toby Sterling; Editing by Clarence Fernandez, Tomasz Janowski and Barbara Lewis)

Source: Reuters

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