Douglas Feagin resigns from Paytm with immediate effect
One 97 Communications, Paytm’s parent company, announced today that Douglas Feagin, its non-executive, non-independent director, has resigned effective February 2, 2023.
“In recognition of the company’s growth as a publicly listed company and the maturity of the business, at the request of the nominating shareholder, I hereby resign from my position as a director on the Board of Directors of Paytm,” Feagin stated in his resignation letter as per a regulatory filing by One 97 Communications.
On February 3, 2023, the company’s board of directors will consider Q3FY23 earnings.
Paytm’s consolidated loss increased to Rs 593.9 crore in the second quarter ended September 30, 2022. Paytm reported a loss of Rs 481 crore in the same period last year in its regulatory filing.
Paytm’s consolidated revenue from operations increased by about 76 percent during the reported quarter, to Rs 1,914 crore, from Rs 1,086.4 crore in the September 2021 quarter.
Paytm reported that revenue from payment services to consumers increased by 55% year on year (YoY) to Rs 549 crore, while revenue from payment services to merchants increased by 56% to Rs 624 crore.
“This was achieved without any UPI incentive during the quarter,” the company said.
Paytm shares closed at Rs 543 yesterday, up 2.5 percent in the last five days, and was up more than 24.3 percent from its 52-week low of Rs 438.35 on November 23, 2022.
Paytm announced the purchase of 52.5 lakh equity shares in December 2022.
According to the company, the buyback will take place on the open market. The maximum buyback price has been set at Rs 810 per share.
Assuming a full buyback of Rs 850 crore, plus applicable buyback taxes, the total outlay will exceed Rs 1,048 crore.
The company stated that it is on track to meet its previously stated goal of achieving EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) profitability before ESOP (Employee Stock Ownership Plan) costs by the quarter ending September 2023.
Paytm also stated that the IPO proceeds will not be used for this buyback.
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