On 18 November, RS2 Software plc issued an Interim Directors’ Statement explaining the Group’s current and prospective international expansion strategy.
RS2 described 2016 as the year of investment, business development and international expansion. Indeed, the Group confirmed that it established worldwide presence through its subsidiaries in the US and the Philippines and managed to attract experienced industry specialists to join its ever-growing team. In addition to the new license and processing agreements already concluded by the Group this year, RS2 is also currently engaged in progressive discussions with processing and licensing clients in Europe, Asia Pacific and North America.
RS2’s managed services business continues to increase its processing volumes which have quadrupled since the beginning of the year. In this respect, RS2 stated that it holds a very healthy sales pipeline across Europe, North and Latin America and the Middle East. These are being translated into potential new deals. During H2 2016, RS2’s managed services subsidiary – RS2 Smart Processing – also focused on the implementation efforts of the two new clients engaged in the first half of 2016. Revenue from these contracts is expected to be generated over the coming months and years.
In conclusion, RS2 affirmed that it has capitalised on the strength of its relationships with key players in the industry and established alliances with banks across Europe, Asia Pacific and North America to provide global acquiring and central processing services. This positions RS2 very competitively in the market as such solutions imply more efficient and cost effective opportunities for its clients. During Q3, the Group reached an agreement with a global provider of third party payment, risk and commerce solutions, to join forces and deliver a One-Stop-Shop Payment Processing, securing its first customer in the Thai market, with a global offering.
During 2016, the Group’s revenue remained stable and comparable to 2015. In addition to the negative impact of foreign currency fluctuations, the Group profitability has been affected by the investment in global expansion. Nonetheless, the Board of Directors is maintaining its confidence in the Group’s business model, its underlying technology, revenue pipeline and expansionary targets.