NETeller Piles On The Profit
Published: Tuesday, September 12, 2006 Online-Casinos.com
NETELLER PILES ON THE PROFIT
62 percent rise in revenue, a 43 percent profit in first half results, and a bullish forecast going forward
The Isle of Man-based e-Cash processor Neteller again showed what a stellar performer it is this week with the release of first half numbers showcasing a 43 percent increase in profits...and the promise of more of the same in the second half.
Presenting positive news in a jittery market unsettled by events in the United States last week (see previous Online-Casinos.com and InfoPowa reports), the money transfer specialist used by millions of online gamblers forecast more improvement in the second half of 2006.
"Whilst the gaming industry is subject to continuing regulatory uncertainty, Neteller is well placed to report significant progress during the second half of 2006," chief executive Ron Martin said.
Pretax profit was $58 million in the six months to end-June on revenues up by 62 percent at $119 million.
Customers using the Neteller service increased from 1.75 million at end June last year to 2.91 million currently, with average daily sign-ups of 3 251. Active customers in Q2 2006 were 535 853 compared with 359 467 in Q2 2005 and 146 015 in Q2 2004.
The company has appointed a widely experienced executive as president of its financial services. David Gagie will help develop the business further, using his wide management knowledge developed in part at PayPal. Neteller's reported ambitions to move into more diversified mainstream banking markets will benefit from Gagie's past involvement in developing banking strategies.
His management track record includes consumer lending and current account business as a managing director of the giant UK bank TSB Lloyds and he has acted as chairman of the MasterCard UK board.
Suffering some collateral damage from the United States legal clampdown, Neteller saw its share price slide 94 pence to 336 pence last week, but investors will be reassured by the latest performance numbers as the market calms down.
Earlier this year the vendor said it was launching German, French, Spanish and Italian versions of its service as well as a new payments platform, called 1-Pay, in Asia. Neteller says further initiatives are planned for Sweden, Denmark, Turkey, Poland, Brazil and Australia in the next six months.
