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Net Element, Inc. (NETE) Announces Partnership with Oldest Bank in the United Arab Emirates
Before the opening bell, Net Element, Inc. (NASDAQ: NETE), through subsidiary Net Element FZ, LLC, announced its entry into a new agreement with Mashreqbank, a leading financial institution operating in the United Arab Emirates that’s recognized as one of the most innovative banks in the Gulf Region. Under the terms of the agreement, Net Element will provide a number of transaction services to Mashreqbank, including transaction clearing, draft capture and settlement of bankcard transactions across multiple currencies, as well as full integration of its proprietary Internet Payment Gateway and risk management services.
“We are excited about our partnership with the award-winning Mashreqbank, UAE’s leading financial institution,” Suresh Menon, chief executive officer and managing director of Net Element FZ, LLC UAE, stated in this morning’s news release. “Under this agreement, Net Element will launch its merchant acquiring in the UAE as part of its government payment processing solutions offering.”
News of the Mashreqbank agreement continues to build on Net Element’s recent progress toward expanding its presence in international markets. In late September, the company’s PayOnline subsidiary entered an agreement with Dunkin’ Donuts (NASDAQ: DNKN), one of the world’s most recognizable coffee brands, to enable payment acceptance for online ordering and delivery services at the chain’s Russian locations. Weeks later, PayOnline achieved another milestone when it announced an agreement with ExLine, Kazakhstan’s market leader in courier services, to enable online payment acceptance for more than 50,000 customers.
Net Element’s recent growth on the international stage has positioned the company to build on its strong financial performance, which included an 11 percent year-over-year increase in net revenues during the third quarter of 2016. With these results, Net Element has now recorded nearly $39 million in net revenues during the first nine months of this year, marking an increase of 55 percent from its 2015 totals.
This revenue growth was attributed largely to the company’s North America Transaction Solution segment, which continues to boast organic growth of SMB merchants through an emphasis on value-added offerings. For the nine-month period ended September 30, 2016, this segment accounted for revenues of $29.4 million, a 53 percent increase over the prior year. Likewise, the company’s remaining segments, Mobile Solutions and Online Solutions, recorded year-over-year net revenue increases of 43 percent and 92 percent, respectively, during the first nine months of 2016. Capping off the financial highlights, Net Element’s adjusted EBITDA for Q3 2016 was $196,000, up from $83,000 in Q2. This was the company’s second consecutive quarter of positive adjusted EBITDA.
For more information, visit www.NetElement.com
