The Dutch payment service provider Adyen has presented remarkable business figures. In view of the ongoing trend towards online shopping and cashless payments, the company grew by 65 percent to EUR 272.7 million (Ebitda) in the first half of the year – a doubling of the surplus. Net sales grew by 46 percent compared to the same period in the previous year to 445 million euros.
The Amsterdam-based company, which was founded in 2006, is sticking to a targeted annual growth rate of 25 to 30 percent under these conditions. In particular, Adyen wants to process payments for Uber, Ebay, Netflix, Spotify and Facebook. With this strategy, the payment service provider should also be able to deliver similar results in the future. The Ebitda margin, which should be around 65 percent in the medium term, was also confirmed. As a result of the announcement of the business figures, the share rose by a good three percent to a previous all-time high. Since the IPO in 2018, the price has increased tenfold.
Elimination of Wirecards and pandemic as special effects
A not entirely negligible part of this growth should, however, also be the result of Wirecard’s departure last year be attributable. In addition, Adyen was able to post 27 percent more payment transactions or purchases than in the previous year. Even if there is still a lot left of the 1.2 percent that should go to the payment service provider (excluding the special conditions) minus the commissions to the credit card companies, Adyen, like other companies in the industry, has above all leverage through the growing business activity.
Even after the pandemic, many learned behaviors of consumers should be preserved – also and especially in Germany, which has so far been more of a country of cash fans, especially compared to Adyen’s home market, the Netherlands. Even if you take into account that customers like Uber or Booking.com are likely to have contributed significantly less to the positive overall result in the past year, companies like Netflix, Spotify or Ebay have apparently more than made up for it.
And then there is the banking license, the Adyen has been in the EU for four years and in the US last year. It is to be expected that the company will develop in a similar way to Klarna, for example, who have become an all-round contact for money for end customers in recent years. Experience has shown that younger users in particular are no longer necessarily tied to a traditional bank when it comes to money matters.
