13th May 2008 06:00
NETELLER Plc
AGM STATEMENT
Encouraging start continues into second quarter
"Since my statement to shareholders at our last Annual General Meeting in August 2007, I am pleased to report that the NETELLER Group has made substantial progress in rebuilding and repositioning its business to achieve its three year vision of becoming the leading provider of bold payment solutions to selected online communities.
Our restructuring into Merchant Services and Member Services divisions, launched at the start of this year, has enabled us to begin to deliver our full payment product suite to merchants both within and increasingly outside of our traditional online gambling base. The contract wins recently announced by our NETBANX gateway business are examples of this broadening of our merchant base. We continue to add solutions and develop partnerships that over time will facilitate much broader and more cost effective use by our end-user consumers of their e-wallets. The launch of the Net+ card programme later this year should make the NETELLER e-wallet an even more compelling alternative payment solution for individuals who value security, privacy and simplicity when transacting online.
The board is pleased with the progress the Group has made in the year to date. Trading in the first month of the second quarter has shown promising signs that the Group's programme launches and product initiatives are delivering increased revenue, with April's fee revenue (excluding revenue from the Group's gateway businesses, NETBANX and 1-PAY Direct, the 1-PAY e-wallet in Asia, foreign exchange and investment income) recorded at $3.8 million, an increase of 15% from March's comparable revenue. The second quarter is traditionally slower for the online gambling industry. Despite this industry trend, initial indicators are suggesting that the impact of our broadening product range and focus are already beginning to deliver benefits to the Group. With continuing emphasis on ensuring our cost base is appropriate to effectively support our growing operations, the Group is generating positive cash flows from operations on a month-by-month basis.
I extend sincere thanks to all of our employees for their continuing efforts in helping to build our rapidly evolving business across the world, to our shareholders for their continued support and commitment to NETELLER, and to our customers and merchants for continuing support of our offering and business. The board looks forward to continuing progress during the balance of the year and beyond.
The Group's next formal announcement will be an update to shareholders on the Group's progress prior to entering our close period in July 2008."
Enquiries:
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Andrew Gilchrist |
+ 44 (0) 1624 698 713 |
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VP Communications, NETELLER Plc |
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Email: [email protected] |
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Citigate Dewe Rogerson |
+ 44 (0) 207 638 9571 |
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Sarah Gestetner / Seb Hoyle / George Cazenove |
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Daniel Stewart & Co Plc |
+ 44 (0) 207 776 6550 |
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Paul Shackleton |
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Notes to Editors
The NETELLER Group
Trusted by consumers and merchants in over 160 countries to move and manage billions of dollars each year, the NETELLER Group operates the world's leading independent online payments business. Through its NETELLER, NETBANX, and 1-PAY brands, the Group specialises in providing innovative and instant payment services where money transfer is difficult or risky due to identity, trust, currency exchange, or distance. Being independent has allowed the Group to support thousands of retailers and merchants in many geographies and across multiple industries.
NETELLER Plc is quoted on the London Stock Exchange's AIM market, with a ticker symbol of NLR. NETELLER (UK) Limited is authorised by the Financial Services Authority (FSA) to operate as a regulated e-money issuer. For more information about the Group visit www.netellergroup.com or contact us by email at [email protected].
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