Payments provider Paysafe reported revenue of $378.9m (£310m / €367m) in Q2 2022, but has lowered its full-year earnings guidance.
Total revenue fell 1.4% year-on-year, while still within quarterly guidance.
Digital commerce accounted for the majority of revenue at $191.7 million, with $187.1 million from Paysafe US acquisitions.
During the quarter, Paysafe launched a VIP platform for US high roller players through the Skrill USA digital wallet.
Service costs were $158.9 million, up 2.0% year-over-year. Selling, general and administrative expenses came to $134.7 million and depreciation to $69.5 million.
Paysafe also recorded a goodwill impairment charge of $676.5 million. Due to the drop in stock prices, the business had to test goodwill for impairment. After starting the quarter at $3.55 a share, down more than 80% from the highs reached in early 2021, Paysafe ended the period at his $1.95.
This impairment test resulted in a $676.5 million reduction in goodwill and a charge. Details of this write-down will be announced in a future SEC filing.
The business reported an operating loss of $669.4 million after other expenses reached $8.6 million. The business was profitable for him a year ago at $39.6 million.
Pre-tax loss for the quarter was $641.7 million, following other income of $56.1 million and interest expense of $28.4 million.
After taxes of $10.2 million, total net income for the period was $631.5 million, down $624.7 million from the small loss recorded in Q2 2021.
Meanwhile, first-half revenues were down 1.9% to $746.5 million. The business faced a number of costs, the largest of which was an impairment charge of $1.88 billion. This is the result of his $1.2 billion impairment charge in the first quarter and additional charges in the second quarter. As a result, the business lost him $1.86 billion before tax.
Taking into account other income, interest expense and income taxes, the net loss for the half was $1.8 billion after being profitable in the first half of 2021.
In addition to the second quarter results, Paysafe revised its full-year 2022 revenue to $1.49 billion from $1.47 billion. This figure was originally set between $1.53 billion and $1.58 billion.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) forecast for the full year has also been lowered from the original $440 million to $460 million to $415 million .
Paysafe said the decline in revenue and adjusted EBITDA “reflected the impact of foreign exchange and macroeconomic uncertainty.”
