The Isle of Man based e-cash processor Neteller plc has released its half year results, reporting on the six months to end June 2008 and claiming a 'solid' performance as the company continues to diversify into European and Asian markets.
First half operations showed continued growth with the following operational highlights:
- Continued investment in improving product offering in core European and Asia Pacific markets
- Delivery of a new integrated Merchant Payment Suite with the focus on driving contract wins across all segments of Neteller business, including e-wallet, payments gateway and financial services.
- E-wallet revenue per active e-wallet user was $130 in Q2 2008, up 15 percent from $113 in Q1 2008, and up 18 percent from the Q2 : 2007.
- Active e-wallet users (North America excluded following withdrawal from that market) totalled 100 760, a slight decrease of 1 percent from the 101 301 recorded in Q1 2008, and an increase of 4 percent over the same quarter in 2007.
- Sale of principal Calgary property completed on 10 July 2008 for CAD$ 33.5 million.
Financial highlights include:
- Fee revenue in H1 2008 grew 18 percent to $32.8 million from H1 2007 – e-wallet revenue increased 10 percent to $24.5 million over the same period. Total revenue in H1 2008 was $35.9 million.
- European revenue (including Netbanx) was $23.4 million, an increase of 10 percent from H1 2007; Asia Pacific (including 1-PAY Direct) grew 58 percent to $8.6 million over the same period.
- Gross margin of 61.6 percent in H1 2008 (H1 2007: 54.6 percent); EBITDA in H1 2008 $5.9 million before stock option expense and other items.
- Profit before tax of $1.2 million (H1 2007: US$ 24.7 million loss).
- Cash flow from operations: positive for H1 2008.
- Solid balance sheet at 30 June 2008 with $61.7 million cash and cash equivalents (before proceeds from sale of Calgary property of CAD$33.5 million).
- On track to announce maiden dividend with full year results.
Ron Martin, President & CEO, commented "The business has delivered a solid performance in the first half of 2008. We have made significant steps in repositioning our business and the adoption of our Merchant Solution Suite amongst both gaming and non-gaming customers is beginning to drive tangible benefits.
"Growth in our key European and Asia Pacific markets remains encouraging. We have a number of significant developments targeted for launch in the second half of 2008 including the Net+ card and merchant joint marketing products and programs. Through these and our continued efforts to add innovative payment solutions in our chosen markets, we expect to see this momentum continue. The Board looks forward to continued progress and remains confident about prospects for the business."