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Neteller Growth

The Isle of Man based e-cash processor Neteller plc has issued a trading update for its third quarter to September 30, highlighting continued growth, with revenue up 27 percent from Q3 2007, at $13 million.
 
European revenue (including subsidiary Netbanx) was $12.1 million, an increase of 20 percent from Q3 2007; Asia Pacific (including Netbanx Asia) grew 61 percent to $4.9 million over the same period.
 
Other highlights include:
 
* Active e-wallet users totalled 97 447 in Q3 2008, up 3 percent from Q3 2007.
 
* E-wallet revenue per active e-wallet user continued to improve, reaching $134 in Q3 2008, up 23 percent from $109 in Q3 2007 and up 3 percent from Q2 2008.
 
* Average daily sign ups and average daily receipts in Q3 2008 showed growth of 3 percent and 31 percent respectively from Q3 2007.
 
* Gross margin of 60 percent (Q2 2008: 61 percent) and operating income of $3.8 million (Q3 2007: $2.7 million).
 
* Solid balance sheet at 30 September 2008 with $89.4 million cash and cash equivalents.
 
Operating highlights included the launch of the group's new Net+ prepaid physical and virtual cards to existing e-wallet users, and the proposed renaming of the group to Neovia Financial Plc subject to shareholder approval.
 
Ron Martin, President & CEO, commented: “Despite the challenging economic environment, the Group has continued to show underlying growth in its core e-wallet business both in Europe and Asia Pacific. 
 
"Our efforts to target key merchants with our integrated Payment Suite are beginning to bear fruit and we have improved our consumer offering with further enhancements to the e-wallet and the launch of our Net+ prepaid cards.  The current market conditions are producing a number of interesting investment opportunities which we are actively pursuing and we hope to provide further updates in due course.   We anticipate the core business will continue growing into the fourth quarter, and the Board believes the Group is on track to meet current market expectations for the full year.”



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