Mi-Pay Group PLC Contract Extension (9624M)

TIDMMPAY

RNS Number : 9624M

Mi-Pay Group PLC

03 August 2017

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement via Regulatory Information Service, this inside information is now considered to be in the public domain

3 August 2017

Mi-Pay Group plc

('Mi-Pay', the 'Group', or the 'Company')

Contract Extension

Mi-Pay Group plc (AIM: MPAY), the leading provider of mobile payment solutions to Tier 1 Mobile Network Operators and Mobile Virtual Network Operators, is pleased to announce that it has agreed a contract with a long-term existing client for an incremental 3 year period. This is expected to secure existing revenues and drive material growth in payment transaction value processed from the EUR25 million processed in 2016. During the life of the contract it is expected that per annum transaction value processed will increase to over EUR100 million.

Mi-Pay will be working with the client over the next 12 months to secure the growth in transactions through the delivery of its fully outsourced, Omni-channel digital payment solution and assisting the client with its full infrastructure rebuild. Mi-Pay will be integrating and providing new services to the client's customers, improving the end user digital payment experience within a secure, risk free fully managed environment and ultimately aiming to migrate further consumers to its solution during 2018.

There will be an initial reduction in revenues and margin as both parties focus on the delivery of new solutions and new commercial terms take effect, however Mi-Pay expects to see strong long-term revenue growth during 2018 and beyond as the anticipated higher volumes are realised

Seamus Keating, Chairman of Mi-Pay Group plc commented: "We are delighted to have secured an additional contract with one of our valued existing clients for another three years, in which we expect to aid them in fully transforming their infrastructure and significantly grow their digital consumer base as their chosen digital payments partner. We look forward to growing our relationship with our client and providing additional functionality to their end users."

For further information please contact:

 
 Mi-Pay Group      IFC Advisory         Zeus Capital 
  plc 
 Tel: +44 207      Tel: [phone]     Tel [phone] 
  112 2129          8671                 1512 
 Seamus Keating,   Graham Herring       Nick Cowles 
  Chairman 
 John Beale, CFO   Tim Metcalfe         Jamie Peel 
                    Heather Armstrong 
 

About Mi-Pay Group

Founded in 2003, Mi-Pay Group delivers fully outsourced online and related payment solutions to digital ecommerce clients, primarily in the mobile sector. Its product offering provides the infrastructure to enable pre-paid mobile devices to be topped up via a variety of channels such as websites, mobile applications and social media applications and customers include Mobile Network Operators (MNOs) and Mobile Virtual Network Operators (MNVOs). Mi-Pay sells, integrates and operates its products and solutions on a global basis. For further information, please visit www.Mi-Pay.com or contact details as shown above.

This information is provided by RNS

The company news service from the London Stock Exchange

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August 03, 2017 02:00 ET (06:00 GMT)