Neovia posts Q1 trading update

Source: Neovia

Neovia Financial (LSE: NEO), the independent global online payments business, announces its trading update for the first quarter ended 31 March 2009.

First Quarter Highlights

  • Group revenue of US$ 16.4m down 3% compared to Q1 2008 of US$ 17.0m;
  • E-wallet revenue flat at US$ 11.4m but overall fee revenue, including gateway businesses, up 3% from Q1 2008 to US$ 15.8m;
  • Average daily receipts down 4% from Q4 2008 and 11% from Q1 2008;
  • Active e-wallet users down 5% at 92,757 compared to Q4 2008 (excluding North America);
  • E-wallet revenue per active e-wallet user US$ 122 for Q1 2009, an 8% increase on Q1 2008;
  • Gross margin at 58% compared to 62% and 64% for Q1 2008 and Q4 2008 respectively;
  • Income from operations up 29% to US$ 3.1m compared to US$ 2.4m in Q1 2008;
  • Total Group cash was US$ 76.5m at 31 March 2009;
  • Board committed to Group's strategic vision and objectives to deliver shareholder value.

Dale Johnson, Chairman, commented: "Trading in the first three months of 2009 is disappointing and reflects a weakening trend in Europe due to an increasingly competitive market, challenging economic conditions, volatile current markets and limitations in new product introductions until Newteller (the Company's new technology platform) is launched in Q3 2009. The future benefits of Newteller will include cost savings and greater operating efficiencies within the Group. We expect 2009 to be a year of both significant challenge and exciting opportunity. Investment in the business will continue, especially for completion of the Newteller programme.

Strategic opportunities are being examined, particularly in support of the Group's card strategy. The work to create greater differentiation, accompanied by a cost structure that creates competitive advantage, will be accelerated. While the Board remains confident about the Group's prospects, the overarching themes for 2009 will be leveraging high potential initiatives, cost control and prudent cash management."

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