Optimal payments hits the jackpot

Accelerating sign-ups and higher user spending boosted sales by 46 per cent at Optimal's Neteller business, which offers an online wallet to gamblers and other web-browsers. It launched Neteller and its Net+ pre-paid card service in the US, receiving strong interest from gaming merchants in Nevada, New Jersey and Delaware - the first three states to legalise online gambling.

Optimal also made progress in its Netbanx segment, growing sales by 31 per cent to $117m. It recently gained "principal membership" with Visa and MasterCard in Europe, allowing it to process payments directly with EU merchants, starting next quarter. That will give it greater credibility and allow it to charge more competitive rates.

After the period-end, the company also spurred growth by acquiring two industry peers in the US, Meritus and GMA, for $225m. It partly funded those deals with a new $150m debt facility, and spent an additional $11m on salaries, marketing and technology last half. Nevertheless, strong cash generation allowed it to grow its cash pile by a quarter.

Broker Canaccord Genuity raised its forecasts by about 11 per cent and now expects full-year pre-tax profit of $71m, giving EPS of 38¢, rising to $90m and 45¢ in 2015.