Skrill’s parent company lost $1.2 billion in Q1
PaySafe, the parent company of Skrill and Neteller, reported relatively mild quarterly results as the industry slows.
In a statement, the company said that its total revenue declined by 3% to $367.7 million. This decline happened because of the $11.6 million unfavorable forex exchange impact. In total, the company published a net loss of $1.2 billion, compared to a net loss of $60.6 million in the previous year.
Digital commerce was the biggest contributor in the company as its revenue rose to $198.5 million. This increase was lower than the $224 million that it generated in 2021. On the other hand, its US Acquiring division rose to $169 million.
Meanwhile, its eCash business generated revenue of over $101 million while digital wallets like Skrill and Neteller’s revenue fell to $82.1 million. In a statement, the firm’s CEO said:
“I am thrilled to be joining the talented Paysafe team at such a pivotal time. Paysafe has a long track record of being a pioneer in payments and with a lot of potential to grow in verticals with strong tailwinds.”
PaySafe’s results came at a difficult time for fintech companies. For example, the Paysafe stock price has crashed by more than 83% in the past twelve months. As a result, the company’s market cap has crashed to about $1.65 billion.
Other fintech firms have also crashed. For example, Affirm’s shares have retreated by 68% in the past 12 months while PayPal has lost over $240 billion in value in the past few months.