CHANGE OF IDENTITY FOR NETELLER PLC
10 October 2008
e-Processor putting the past behind it
The online gambling e-cash processor Neteller plc's
announcement that it is to change its identity has been
interpreted in UK financial circles as an attempt to
divorce itself from the past and its expensive (its
pre-tax loss for 2007 was $185.7 million) run-in with
the US Department of Justice (see previous InfoPowa
reports)
The London-listed online payment processor will from
November 17 be known as Neovia Financial, reports
Reuters news agency.
The re-branded group will however retain the names of
its three main financial products - Neteller, Netbanx
and Net+ - with chief executive Ron Martin saying that
the new parent name is aimed at rebuilding its
credibility with merchants, customers, partners and
regulators.
"An element of the strategy is moving beyond the US
situation," Martin said.
After exiting the US market, Neteller quit its Canadian
base, cut more than half its staff and regrouped round
European and Asian markets. It pledged to end its
dependence on online gambling for revenue, merging its
payment gateway with e-wallet operations and launching a
new card, Net+.
Last month, it reported interim profits of $1.15
million. Martin has revealed the group is ahead of
schedule in reaching a target of 18.5 percent in
non-gaming revenues - the goal is to reach 30 percent by
2010.
"Gaming will continue to be an important part of the
business, but on the other hand we have built a payment
capability much beyond gaming and many products have an
application outside of gaming," Martin claimed.
Neteller is feeling the economic downturn as market
conditions cause customers to rein in discretionary
spending, but remains optimistic. Martin said that from
a Neteller perspective, the firm is looking at a
three-year game that is unlikely to be materially
impacted by present conditions.
Online Casino News courtesy of
InfoPowa
More news here.
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