In the first half of 2016, RS2 Group reported profit before tax of €3.4 million, a reduction of 48 per cent when compared to the same period last year. The group said this was due to two main factors: increases across all categories of expenses as the group gears up for further growth, and the effect of foreign currency fluctuations. During the first six months of the year, the group concluded new agreements both for the licensing and the processing business.

RS2 Software concluded a licence agreement with a new customer, a payment processing company in Germany, while its subsidiary, RS2 Smart Processing, engaged two new clients for its managed services business: a Payment Service Provider (PSP) in Germany, and one of the largest acquirers in Europe. Particularly with regards to the managed services clients, revenue from these contracts is expected to be generated over the coming months and years.

During 2016, the group also established a new subsidiary in Manila, the Philippines, to provide development and support services and also serve as a development centre for the headquarters in Malta.

As a result, cost of sales increased by 14 per cent over 2015. The group has also secured sponsorship for its managed services business in the US, which it said was essential for its operations. RS2 is also currently pursuing new opportunities with partners in India and Vietnam to offer both licensing and managed services solutions.

During Q2, the company has reached another milestone, processing over 62 million transactions in just over an hour by using the massively scalable technology services. This breaks the company’s last year’s best benchmark result so far of processing 40 million transactions per hour.

Due to further substantial investment in infrastructure and business development, the board did not declare an interim dividend.