MoneyTransfers
/News/Skrill’s parent company lost $1.2 billion in Q1

Skrill’s parent company lost $1.2 billion in Q1

Crispus Nyaga
Author 
Crispus Nyaga
1 minutes
May 11th, 2022
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.

Contributors

Crispus Nyaga
Crispus Nyaga is a distinguished financial analyst with over nine years of industry experience, specializing in the stock market, forex, equities, and commodities. His insightful analysis has been featured by prominent financial brands, showcasing his deep understanding of market dynamics. As an active trader managing his family's investments, Crispus combines practical trading acumen with analytical expertise.