Net Element Reports Second Quarter and First Half 2018 Financial Results and Provides Business Update

Net Element (NASDAQ:NETE) has announced its financial results for the second quarter ended June 30, 2018.

As quoted in the press release:

Second Quarter and First Half 2018 Financial Performance:

For the three months ended June 30, 2018, net revenues increased to $16.46 million, an increase of 2% compared to $16.14 million in the second quarter ended June 30, 2017. The increase is primarily due to organic growth in the North American Transaction Solutions segment, which experienced growth of 6% over the prior year. International Transaction Solutions segment experienced a decline of 19% due to elimination of branded content business, which accounted for $684,000 of net revenues in 2017. Normalizing elimination of branded content business resulted in 11% growth in the International Transaction Solutions segment and 6.5% across all segments over the same period of the prior year.

For the six months ended June 30, 2018, net revenues increased to $32.45 million, an increase of 9% compared to $29.7 million in the prior year. The increase is primarily due to organic growth in the North American Transactions Solutions segment, which experienced growth of 15% over the prior year. The Company’s International Transaction Solutions segment experienced a decline of 21% due to elimination of branded content business, which accounted for $1.34 million of net revenues in 2017. Normalizing elimination of branded content business resulted in growth of 7.3% in the International Transaction Solutions segment and 14.4% across all segments over the same period of the prior year.

United States accounted for 88% of total revenues for the second quarter and 87% for six months ended June 30, 2018, while international revenues were 12% for the second quarter and 14% for six months.

• Total dollars processed for the first half of 2018 increased 37% to $1.62 billion from $1.18 billion in transaction volume during the same period in 2017. Led by robust growth from our subsidiary Unified Payments, the North American Transaction Solutions segment saw the largest increase of 40% to $1.4 billion from $1 billion. International Transaction Solutions increased 20% to $211 million from $176 million.

Click here to read the full press release.