Worldpay Share Discussion Threads

[old fool2] 14/4/2016 11:22

Plus 500 - quarterly figures out on Monday 18th April

[topicel] 14/4/2016 08:56

Hi Togglebrush, new here because of exactly that fresh interest in the press and TV. I admit to being a bit of a Luddite when it comes to tech matters and consequently have been wary of investing in such matters ever since a bad experience with the old Trafficmaster at the turn of the Millenium when dot.com and tech plays were, as you'll no doubt know, running wild!

But clearly there has been reasonable interest in the placing and to me any mention of a maiden dividend - even if probably small - is going to interest more funds and capital for the next step in what seems like the future journey for smart payments we all must tread.

You posted above that a half-year divi might actually be a tough one to manage, so still wary if that is your experienced view. Any more general observations? Are they any competitor with PayPal for instance who really are good IMHO. Cheers.

Topicel

[togglebrush] 13/4/2016 08:25

Alphahunter there are Charts and News in Header plus other remarks which were NOT included in the previous thread.
'
Timing is based on first Annual Results as a public company together with Press and Business TV who are beginning to show interest in this share. The sell down of share holding of Advent and Bain's, which had strong buying interest, is a bonus because it increases liquidity.

[alphahunter] 11/4/2016 22:16

Back from holiday.
Why a new thread?

[togglebrush] 08/4/2016 09:38

STRONG CITY INTEREST in placing see RNS 6 April 2016
'
.. Advent International Corporation (the "Advent Funds") and Bain Capital LLC, announce .. decided to increase the placement of shares in the Company from approximately 250 million ordinary shares to approximately 275 million ordinary shares due to strong investor demand. The Placing Shares represent approximately 13.8% of the Company's issued ordinary share capital.
'
... will continue to hold approximately 28.2% of the issued share capital of the Company.

[togglebrush] 06/4/2016 13:18

Before getting enthusiastic about a dividend, it is useful to note that it is 20% to 30% of Profit after Tax. For 2015 it would not be possible but, with the Year on Year (YoY) momentum, it may be possible for 2016 ???

From Income statement on page 71 of Annual Report for 2015
_______________________________________________2015_____2014_____YoY Change
‘
Underlying profit before tax___________________188.1____132.8____42%
Separately disclosed items:
– affecting EBITDA____________________________(103.7)___(88.6)
– affecting depreciation and amortisation______(69.9)___(82.7)
– affecting finance (costs)/income______________ 4.6_____(8.6)
‘
______________________________________________(169.0)__(179.9)___6%
==================================================================
Profit/(loss) before tax________________________19.1____(47.1)
Tax charge_____________________________________(48.9)____(2.9)
==================================================================
Loss for the year______________________________(29.8)___(50.0)___40%

Earnings per share
Underlying pro forma EPS (p)____________________ 6.9_____ 4.6____50%
Reported EPS (p)________________________________(1.8)____(3.1)___42%

[togglebrush] 05/4/2016 17:13

Press and CNBC publicity following Money 2020 conference in Copenhagen

[togglebrush] 05/4/2016 17:07

Leading Fintech company provides payment solutions in-store, on-line and on mobile. Company is in FTSE 100 with from Annual accounts
transactions 13.1 billion up 14% yoy, value £401.9 billion
'
Visa, Inc. and MasterCard, Inc are technology-based businesses who don’t take credit risk but instead partner with issuing banks and function like toll collectors for global consumption spending. Further down the payments value chain sit merchant acquirers and processors, who act as the “sales and distribution” arm of the payments industry. Acquirers enable merchants to accept credit and debit card payments by connecting them to the various networks. London-based Worldpay Group plc is the largest merchant acquirer in Europe, serving a diverse set of 400,000 merchants across 146 countries in 126 currencies. They accept more than 300 different payment types.
'
Their solutions are delivered by 5,000 colleagues, across 25 offices in 13 countries
Invested more than £1 billion in the last five years in our technology, people and capabilities
‘
07 Mar 2017... Full Year Results 2016
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Dividend policy
‘
The Board adopted a dividend policy based on a payout ratio of 20-30% of reported profit after tax per annum in the current financial year '
'
Long History
'
1965 was formed as CentreFile
1989 Electronic payment system called Streamline in UK
1994 Internet payment services; one of the first providers in the world.
2007 It was the largest merchant acquirer in Europe; one of the largest globally
2013 June launched a mobile card processing terminal which connects to smart phones.
2013 September acquired US payment processing company Century Payments
2015 October IPO on Stock Exchange
2015 December admitted to FTSE 100
2016 March first public Full Year results
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Business model
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It is a United Kingdom-based company, which is engaged in providing payments processing technology with three divisions:
‘
Global eCom, serves Internet-led multinationals with payment needs, and focuses on providing to airlines, digital content, online gaming, global retail and travel. It provides a range of payment services, both online and by mobile, to accept, validate and settle payments in approximately 126 currencies across 146 countries, using any one of over 300 payment methods.
'
Worldpay USA. It provides in-store, online and mobile payment acceptance solutions for the United States-based customers, with a focus on developing omni-channel and integrated payment solutions for its approximately 109,000 SME customers, and vertical specific solutions for its approximately 13,000 enterprise customers in the grocery, petroleum, and restaurant and retail industries.
'
Worldpay UK. It provides in-store, phone, online and mobile payment acceptance solutions for over 300,000 the United Kingdom and Ireland-based customers, from small and medium enterprises (SMEs) to large corporates.

[alphahunter] 08/3/2016 11:49

Paysafe,

Is this the equivalent to pre-paid electricity meters applied to online payments?
Interesting demographic and specialised verticals I suppose. I wonder what the churn is. Probably don't have to spend much in R&D, nor be impacted by new payment directive I guess.

Not much chance on PSD2 here. :-(

Anyway, I've covered and out of the WPG position after a quaint 10% drop in the share price today.

Enjoy your trades.

[jarega85] 08/3/2016 11:38

Wow! This is plummeting! Paysafe all the way with their annual results expected 16th March and should be reporting exceeding expectations!

[reddave999] 08/3/2016 11:04

I agree EH9 Paysafe it is then.

[alphahunter] 08/3/2016 08:22

Oh dear.
A premium valuation for an organic growth merely on par with the rest of the payment processing industry...
No big bang for the maiden results...
US integration a tad costlier than expected (that's a teeny weeny bit of a bother to keep in mind given the "shared vision" and a business model based on acquisition/consolidation)

And still not many II on the share register.
Is this stock a PI punt?


BTW, does anyone who punted the stock long have a view on PSD2 net effect?
Thanks.

[qs99] 08/3/2016 07:13

Good start to 2016, in line with expectations; guidance for the medium term unchanged
"We made significant operational and financial progress in 2015. It was a year of considerable achievement, in the implementation of our strategy, in strengthening and deepening our market presence, capabilities and technology, and helping our customers prosper. The Group has made a good start to 2016, in line with expectations, and these results provide a strong platform for continued growth over the medium term."

so all in line and on a big old rating still....as EH9 says, surely IMO / DYOR Paysafe is the better value play?

[eh9] 08/3/2016 07:12

Pretty uninspiring. Paysafe a much better bet

[martywidget] 08/3/2016 07:02

Worldpay Group PLC - WPG
Final Results
Released 07:00 08-Mar-2016

[alphahunter] 07/3/2016 09:28

On PSD2, wondering what the net balance is between data mining opportunities and disintermediation threats...

Any view of the holders on this forum?
Very quiet here.

"Buy" comments yesterday's Sunday Times @ 300p - a generalist's approach (growth in online payment, defendable margins,etc,...).

[alphahunter] 29/2/2016 21:42

"EU legislation has a large impact on payment systems, including specifically the PSD, PSD2, EU IFR and the EU single digital market strategy"

p102 onwards

[typo56] 29/2/2016 16:11

MSCI changes effective tonight I think. Likely to be some volume in the closing auction.

[alphahunter] 29/2/2016 15:41

You may want to google "wirecard" and "Zatarra".
Nothing to do with WPG obviously, but it shows a sharp research-driven attack on Wirecard - whether this is justified or not is a mooted point.

[quickmind] 28/2/2016 08:26

I clicked the url in Post #58 and got "Error 404". Thanks anyway.

[quickmind] 27/2/2016 08:13

I wish I possessed that kind of power ...

[alphahunter] 26/2/2016 15:41

Wirecard: if you fancy reading another monster 101 slog.


One of these...

[quickmind] 26/2/2016 14:14

Had a quick look at the 347-page long Ipo Prospectus. Competition is strong:

"Worldpay’s competitors include financial institutions and well-established payment processing companies, and on a world-wide basis include Bank of America Merchant Services, Vantiv, Inc., First Data Corporation, Chase Paymentech Solutions, Barclaycard, Global Payments, Inc., Cielo, ElavonInc., Adyen, Ingenico, Wirecard, Worldline, Heartland and in the future could include the card schemes,for example Visa and MasterCard.
...
Worldpay is facing new competitive pressure from non-traditional payments processors and other parties entering the digital payments industry, such as PayPal, Stripe, Square and Braintree, ..."