Dutch company Adyen NV (OTCMKTS: ADYYF) has announced that it toped the market projection with a 65% jump in core profit in the first half of 2021 because of strong growth and higher volumes in North America. Adyen helps tech giants Facebook Inc. (NASDAQ: FB), Netflix Inc. (NASDAQ: NFLX), and Uber Technologies Inc. (NYSE: UBER) in processing payments.
Adyen’s net revenue up 46%
According to Refinitiv data, Adyen reported an EBITDA of €272 million ($318 million) for the six months ending June 30, beating analysts’ expectations of €252 million. Net revenue increased 46% year over year to €445 million, beating analysts’ expectations of €425 million.
The company confirmed its medium-term growth targets of roughly 25% -30% compounded annual growth rate (CAGR). The majority of the rise in volume was attributed to higher volumes at current customers such as McDonald’s. Notably, the company’s total volumes increased by 67% year on year to €216 billion.
In a statement citing the shift to online retail and waning use of fiat cash, Adyen said, “We are solidly executing our strategy in a space that is consistently buoyed by macroeconomic trends … many of which were accelerated by COVID-19.”
Equally, the pandemic drove the shift into online retail, and the impact is likely to last. This has changed the way customer order and collects goods they purchase with payment alternatives also changing. Adyen said, “Ordering ahead, curbside pick-up, and in-store purchases with self-service checkouts will continue to be part of our everyday reality.”
Adyen collaborating with Shiji Group
Besides the big tech companies, Adyen also helps merchants in handling payments online and in stores. Recently the company partnered with Shiji Group to offer simplified payment processing for the hospitality sector.
Shiji Payments VP Michael Balzer said, “Our partnership with Adyen allows us to further improve the operational efficiency of our customers by providing a platform that guarantees a truly seamless and personalized experience for their hotel guests.”