Worldpay cashes in on e-commerce boom

Worldpay - which listed in October - posted higher net revenues and underlying cash profits across its three divisions. Both metrics were up by about a quarter in the global e-commerce business as it signed new customers such as Paddy Power Betfair and expanded its remit with existing clients. Robust demand from digital and airline customers drove net acquiring income and sales of treasury management and foreign exchange services. Management also rolled out new products such as client-side encryption, allowing customers to integrate its technology faster and reduce regulatory costs.

The UK business grew net sales by 12 per cent as innovative products lured new customers such as Lloyds Pharmacy. It also benefited from regulatory cuts to the transaction fees it pays to card issuers. Meanwhile, constant currency net revenue climbed 5 per cent in the smaller US business, as technology investments gained traction and it attracted both small businesses and corporations.

Broker UBS expects adjusted operating profits of £362m for the full year, giving EPS of 11.0p (from £341m and 6.9p in 2015).