Neteller (LSE: NLR), the independent global online payments business, is pleased to publish its interim results for the six months ended 30 June 2008.
- Continued investment in improving product offering in core European and Asia Pacific markets.
- Delivery of new integrated Merchant Payment Suite with the focus of driving contract wins across all segments of Group's business, including e-wallet, payments gateway and financial services.
- E-wallet revenue per active e-wallet user was US$ 130 in Q2 2008, up 15% from US$ 113 in Q1 2008, and up 18% from the same quarter in 2007.
- Active e-wallet users (ex North America) totalled 100,760, a decrease of 1% from 101,301 in Q1 2008, and an increase of 4% from the same quarter in 2007.
- Sale of principal Calgary property completed on 10 July 2008 for CAD$ 33.5 million.
- Fee revenue in H1 2008 grew 18% to US$ 32.8 million from H1 2007 - e-wallet revenue increased 10% to US$ 24.5 million over the same period. Total revenue in H1 2008 was US$ 35.9 million.
- European revenue (including NETBANX) was US$ 23.4 million, an increase of 10% from H1 2007; Asia Pacific (including 1-PAY Direct) grew 58% to US$ 8.6 million over the same period.
- Gross margin of 61.6% in H1 2008 (H1 2007: 54.6%); EBITDA in H1 2008 US$ 5.9 million before stock option expense and other items.
- Profit before tax of US$ 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 US$ 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."