News Release
SALES & MARKETING FOCUS
Recent Performance Improvements: Since September 2007, Earthport has reached a new, higher level of customer service and market focus that has resulted in a steep rise in revenue generation.
During the first half of FY2008, average monthly transaction volumes have doubled while average monthly FX revenues have increased five-fold, all without any additional staff. Specifically, for the first 6 months of FY2008, revenues have increased by 173% over the same period last year and average transaction-driven monthly revenues for this first 6 months are 65% greater than those for the whole of FY2007!
This improvement brings Earthport another step up in performance and closer to profitability. More importantly, through the company's increased focus on existing key clients and the development of additional strategic partner and customer relationships, this momentum is charted to continue.
New Strategic Relationship with IBM: At SIBOS 2007 in October, Earthport was one of only two technology companies invited to participate on IBM's stand. Also, as a fully-fledged Business Partner, Earthport featured in IBM's Product Guide for the event. Already our relationship with IBM and the exposure to IBM's sales force and the clients and prospects visiting SIBOS has meant that significant and specific market opportunities are taking shape.
International Payments Industry: During the past 24 months, Earthport has focussed on a number of strategic service providers in the Money Transfer business and specifically on intermediaries that require a money transfer infrastructure, either for themselves or for their clients. In these applications, Earthport in effect becomes a back-end payments service utility, to whom payments services can be outsourced. Furthermore, in this market we have concentrated on segments where there is proven demand for services in multiple international currencies, such as in the travel industry, entertainment business and the migrant remittance market.
Market Coverage Strategy: Approximately half of Earthport's existing client base is comprised of small-to-medium-sized Corporates (SME's), whose businesses involve many low-value money transfers. Hitherto this market has not been particularly well served by the traditional banking system. However, for these clients, service is the key to success and time is of the essence: from customer contact, through the sales and integration processes, through to revenue realisation. So, the ability to rapidly integrate our International Bank-2-Bank payments system into their back-office enables them to deliver measurable improvements to the service that they offer their customers, quickly and with real bottom-line benefits.
Summary: As a result of understanding our markets more clearly and focussing more accurately, we have been able to offer a better and more responsive service to our existing client base, whilst at the same time we have been able to identify new, major, strategic opportunities. These include sizable banks, corporate clients and government based organisations (US, UK, EU and International) that need to undergo a transformation in their payments strategy and delivery processes.
Of course some of these new opportunities have arisen through our partnership with IBM, but many others have come through the increasing 'clear vote of confidence' in Earthport's capabilities, that we are receiving in both Financial Services and other strategic markets. So, these first months of FY2008 are very encouraging. However we feel that the next 6 to 12 months will see an even greater degree of consolidation and success…and lead Earthport well into growth and profitability!