You do not have permission to view link Log in or register now.
Thursday, 23 August 2007 NETELLER Plc (LSE: NLR), the independent global online payments business, announces its interim results for the six months ended 30 June 2007.
Stabilized business following US resolution to provide solid foundation for future growth
Active customers (ex North America) up 29% to 97,216 in Q2 2007 from 75,381 (Q2 2006)
Completed restructuring to align costs with anticipated revenues
Continued globalization program to yield revenue growth in Europe and Asia Pacific
Delivered first phase of strategy to solidify position as pre-eminent provider serving online gaming sector in selected markets
Management team committed to driving strategy for NETELLER
Revenue in H1 2007 was $50.8 million, a decrease of 57% from H1 2006 due to withdrawal from US market
European revenue in H1 2007 grew 46% to $21.2 million; Asia Pacific grew 46% to $5.4 million
Gross margin in H1 2007 was 55%, compared to 72% in H1 2006
Loss before tax in H1 2007 was $24.7 million due to US restructuring and legal related expenses
Cash at 30 June 2007 was $210.5 million; before $136 million due to US authorities
Cash flow from operations neutral in H1 2007.
Ron Martin, President & Chief Executive Officer of NETELLER, said These results have been produced during a very challenging period for the NETELLER Group and they represent the first stage of rebuilding the business into a platform for growth within the European and Asia Pacific markets. The resolution of our US situation announced in July 2007 allows us to start implementing our strategy to develop further innovative payment solutions for our customers and merchants within our selected markets. We will initially focus on our core market of online gaming where we have developed considerable expertise. In the medium term, however, we will look to add further offerings for our customers that add value to the e-wallet proposition such as payment cards and other payment features. We believe online payments is a rapidly growing market and NETELLER is well positioned to benefit from this. The Board looks forward to the next six months and beyond with confidence about the Groups prospects.