23rd Aug 2007 07:01
NETeller PLC23 August 2007 NETELLER Plc NETELLER INTERIM RESULTS SHOW GOOD GROWTH IN H1 2007 Thursday, 23 August 2007 - NETELLER Plc (LSE: NLR), the independent globalonline payments business, announces its interim results for the six months ended30 June 2007. Operational Highlights • Stabilised business following US resolution to provide solid foundation for future growth• Active customers (ex North America) up 29% to 97,216 in Q2 2007 from 75,381 (Q2 2006)• Completed restructuring to align costs with anticipated revenues• Continued globalisation programme to yield revenue growth in Europe and Asia Pacific• Delivered first phase of strategy to solidify position as pre-eminent provider serving online gaming sector in selected markets• Management team committed to driving strategy for NETELLER Financial Highlights • Revenue in H1 2007 was $50.8 million, a decrease of 57% from H1 2006 due to withdrawal from US market• European revenue in H1 2007 grew 46% to $21.2 million; Asia Pacific grew 46% to $5.4 million• Gross margin in H1 2007 was 55%, compared to 72% in H1 2006• Loss before tax in H1 2007 was $24.7 million due to US restructuring and legal related expenses• Cash at 30 June 2007 was $210.5 million; before $136 million due to US authorities• Cash flow from operations neutral in H1 2007. Ron Martin, President & Chief Executive Officer of NETELLER, said "These resultshave been produced during a very challenging period for the NETELLER Group andthey represent the first stage of rebuilding the business into a platform forgrowth within the European and Asia Pacific markets. The resolution of our USsituation announced in July 2007 allows us to start implementing our strategy todevelop further innovative payment solutions for our customers and merchantswithin our selected markets. We will initially focus on our core market ofonline gaming where we have developed considerable expertise. In the mediumterm, however, we will look to add further offerings for our customers that addvalue to the e-wallet proposition such as payment cards and other paymentfeatures. We believe online payments is a rapidly growing market and NETELLERis well positioned to benefit from this. The Board looks forward to the nextsix months and beyond with confidence about the Group's prospects." Enquiries: NETELLER Plc (for 23 August only at Citigate) + 44 (0) 207 638 9571Ron Martin President & CEODoug Terry CFOAndrew Gilchrist VP Communications + 44 (0) 7824 385 829 Daniel Stewart & Co Plc + 44 (0) 207 776 6550Paul Shackleton Citigate Dewe Rogerson + 44 (0) 207 638 9571Sarah Gestetner / Michael Berkeley / Ged Brumby Conference call details NETELLER will hold a briefing for invited UK-based analysts at the offices ofCitigate Dewe Rogerson, 3 London Wall Buildings, London, EC2M 5SY, later thismorning at 9.30 a.m. NETELLER management will also host a conference call on 23August 2007 at 2.00 pm BST (9.00 a.m. EST) for analysts and institutionalinvestors that can be accessed by dialling +1 866 224 2914 (USA toll free), +1800 795 6202 (Canada toll free), 0800 953 0937 (UK toll free) or +44 (0) 1452569 103 (International). The passcode for this call is # 12762618. A replay of this call may be heard from 6:00 pm (BST) onwards on 23 August 2007by dialling +1 866 247 4222 (USA toll free), +1 866 878 9237 (Canada toll free),0800 953 1533 (UK toll free) or +44 (0) 1452 550000 (International). Thepasscode for this replay access is # 12762618. This replay will be availablefor one month from the date of the call. Transcripts will be available on theCompany's website, www.netellergroup.com, together with this release and theanalysts' presentation. Notes to Editors About the NETELLER Group The NETELLER Group operates the world's leading independent online paymentsbusiness and specialises in providing innovative and instant payment serviceswhere money transfer is difficult or risky due to identity, trust, currencyexchange or distance. Being independent has allowed the Group to supportthousands of retailers and merchants in many geographies and across multipleindustries. NETELLER Plc is quoted on the London Stock Exchange's AIM market, with a tickersymbol of NLR. NETELLER (UK) Limited is authorised and regulated by theFinancial Services Authority (FSA) to operate as a regulated e-money issuer. Formore information about the Group visit www.netellergroup.com. * * * This discussion and analysis contains forward-looking statements relating tofuture events and future performance. In some cases, forward-looking statementscan be identified by terminology such as "may", "will", "should" "expects", "projects", "plans", "anticipates", and similar expressions. These statementsrepresent management's expectations or beliefs concerning, among other things,future operating results and various components thereof or the economicperformance of NETELLER. The projections, estimates and beliefs contained insuch forward-looking statements necessarily involve known and unknown risks anduncertainties, which may cause the actual performance and financial results infuture periods to differ materially from any projections of future performanceor results expressed or implied by such forward-looking statements.Accordingly, readers are cautioned that events or circumstances could causeresults to differ materially from those predicted. PRESIDENT & CEO'S REPORT FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2007 The first six months of 2007 represented a challenging period for the NETELLERGroup during which the efforts and focus of management were split betweenachieving a resolution to the Company's US situation while working to ensurethat the Group's ongoing business outside of North America continued to developin line with our strategic objectives. The resolution with the US authoritiesannounced on 18 July 2007 has allowed the Company to refocus the Group's energyon the growing markets of Europe and Asia Pacific. The second quarter figures released today are the first set of results withoutsignificant residual North American-generated revenue. As highlighted in theCompany's annual report published on 25 July 2007, the Group voluntarily ceasedprocessing funds transfers between US residents and online gambling sites on 18January 2007. Further, during the first half, the Group has ceased processingonline gaming related transfers for customers resident in Canada, Turkey andIsrael. Despite this, our business (ex-North America) has grown substantially in thefirst half of 2007 compared to the same period in 2006. At 30 June 2007, we had97,216 active customers from Europe, Asia Pacific and the Rest of World whichrepresents an increase of 29% from 75,381 active customers as at 30 June 2006(like-for-like basis). Active customers are the key driver of our revenue asexplained further in our Financial Review. Revenue for the first six months of 2007 of $50.8 million included approximately$14.9 million from the US market prior to the Group's withdrawal from thatmarket and a full quarter's contribution from the Canadian business. Thisrepresents a decrease of 57% from $118.9 million for half year 2006. Feerevenue, which includes charges paid by individual and merchant customers,decreased 62% from $110.9 million to $42.6 million. Interest revenue of $8.2million was slightly up from $8.0 million in half year 2006. During the first half of 2007, Europe accounted for approximately $21.2 millionin revenue before interest (an increase of 46% over $14.5 million in H1 06), andAsia Pacific accounted for $5.4 million during H1 2007 (an increase of 46% over$3.7 million during the first half of 2006). Gross margin decreased to 55% for the first half of 2007 compared to 71.8%during the same period in 2006. The Group recorded a loss before tax of $24.7million in the first half of 2007 compared to a profit before tax of $58.0million for the same period in 2006. The loss per share amounted to $0.20compared to earnings per share of $0.46 for the first six months of 2006. The Company recognised in advance of its withdrawal from the US market that itwould be necessary to realign the Group's cost base to its likely revenues toensure a profitable and cash generative operation going forward. Therestructuring and downsizing of the Group's principal operations in Calgary andthe UK in early 2007 resulted in a reduction in staff from over 1,000 to around425 people worldwide. Severance and other costs related to this reorganisationamounted to $2.7 million in the first half of 2007. Further costs relating tothe US resolution including approximately $9 million in professional and legalfees were incurred during the period. In addition, $13 million was recognisedas an expense during the first half as a result of the write-down of the Group'sassets related to its former North American facing business. The second quarter is traditionally weaker than the first quarter principallydue to the seasonal nature of the online gaming market which NETELLER serves.However, the Board believes that the extent of the decline experienced in thesecond quarter of 2007 is more pronounced than usual as a result of severalfactors including the Company's US situation which prevailed throughout thequarter. This is likely to have had an impact on the Group's business andcustomers outside of North America. Furthermore, certain merchants have alsoreported that their business declined in the second quarter relative to the samequarter in 2006 due to the distortive impact of the FIFA Soccer World Cup in2006 which boosted the prior year's performance. The Group's total cash available at 30 June 2007 totalled $210.5 million. Thisfigure is stated before allowing for the up to $60 million of funds seized bythe US authorities in January 2007 and thereafter. As part of the resolutionwith the US authorities in July 2007 the Company agreed to forfeit a total of$136 million to the US. This amount included up to $60 million which was seizedby the US authorities and which shall be applied to satisfy a portion ofNETELLER's forfeiture obligation. NETELLER agreed that it will pay a furtheramount of $40 million on or before 15 October 2007, with the remaining balanceto be paid on or before 17 January 2008. As part of the US resolution, the Group has implemented the Distribution Plan toreturn approximately $94 million of funds owed to US customers. To date, over$71 million of these funds has been requested and is currently in the process ofbeing repaid or has already been repaid to our US customers. We are energetically implementing our strategy for the remainder of 2007 andbeyond to restore the Group's pre-eminence in providing money transfer servicesfor the online gaming sector in selected markets outside of North America,through continued investment in product solutions and technology development.The Group is also pursuing a diversification programme, tailoring financialproducts and services to selected non-gaming markets. Continued Globalisation Recognising the higher growth potential and opportunities within the Europeanand Asia Pacific markets, NETELLER has focused on developing innovative productsand solutions for its merchants and customers in those markets. With locallanguage and/or payment options in 15 countries, our efforts in the first sixmonths of 2007 have been directed at improving the customer and merchantexperience in those countries. We have introduced a localised sign-up process which improves the success ratefor customers verifying their identities on first sign-up. This has been madepossible through NETELLER's Identity Verification Systems (IVS) which was firstlaunched in April 2006. We have made it easier for customers to update theirbanking information directly online, reducing the need for customer serviceinteraction. Additional withdrawal options such as bank wires are now availableto our customers online (in selected countries) and the automated processimproves our processing efficiencies. Our focus on Europe has been evident through the introduction of two new paymentmethods for our German customers, ELV and Giropay. ELV is a non-instant onlinefunds transfer that allows customers to deposit funds to NETELLER and was firstprovided to our German customers in May 2007. We plan to roll a similar optionout to our customers in Austria and the Netherlands in the near future. Giropaywas also introduced in Q2 2007 and offers customers an instant notificationdeposit option so that funds can be transferred directly and instantly to theNETELLER e-wallet for immediate onward use. We have also added the SwedishKroner as a new currency in July 2007 which brings the total number ofcurrencies offered on the main site to six. The introduction of POLi as an instant deposit option in Australia has beensuccessful in increasing both first funding and conversion rates. Approximately45% of our Australian transfers to the e-wallet by volume, now come through thePOLi system. The acquisition of a stake in the business that operates the POLisystem, Centricom Pty Limited, which was announced on 16 August 2007, is afurther example of NETELLER improving its offering to customers and markets withinnovative payment solutions, in this case in the Asia Pacific region. Product developments The Group has continued to invest in technology development programmes toenhance its product offerings and also to streamline workflows in an efficientyet effective manner. Fraud and security has been an area of focus in the firstsix months of 2007 and in particular the successful development of an internalcontrol system that enables the Company to restrict US residents from using theGroup's services. Additional country blocking functionality has been developedfocusing on internet protocol address validation and other checking processes toensure NETELLER's systems are secure. Further improvements have been madewithin the Group's Peer-2-Peer transaction environment, enhancing customersecurity and amending processes for the benefit of the customer, and also ininternal account handling procedures so that important customers are readilyidentified and treated accordingly. Our technology teams, principally in Calgary, have also worked hard to improvethe functionality and stability of the www.neteller.com customer-facing site.The transition of our merchant interface to our Java platform marks a stepchange in our ability to offer customers and merchants a more robust suite offeatures while operating a more stable and easier to maintain site. NetBanx The NetBanx operation continues to perform well, providing debit and credit cardprocessing services to more than 1,600 merchants, principally in Europe. Thebusiness is expanding its operations to extend the range of services it offers.NetBanx generated revenue of more than $3.1 million in the first half of 2007compared to $2.4 million in the same period in 2006. As part of its strategy tobecome a full service payments processor, NetBanx is developing its ability tobecome the Group's online payment hub initially in Europe, but then expandingglobally. A number of new processor connections and payment functionalitieshave been added within the first six months, including direct debit and directcredit in the UK, ELV and Giropay in Germany, EEV (in Austria) and Dutch directdebit payments. In addition, NetBanx has developed the ability to processoutbound bank wire transfers using batch files, integrating directly withpartner banks. Finally, NetBanx has developed new antifraud tools including itsown 3D Secure capability which has been enabled across all NetBanx acquiringpartners, improving the trust between the end user and the online merchant whois NetBanx's customer. Strategy The Group is committed to achieving its vision to provide innovative paymentsolutions to e-commerce communities. Our initial mission is to reinforce ourpre-eminence in those online gaming markets we choose to serve, offering thebest solutions for online gaming merchants in selected markets. The e-wallet isthe central element of NETELLER's worldwide online payment platform andprocessing capabilities. The success of the e-wallet in serving the onlinegaming sector has been evident in our performance to date, and we willvigorously continue to deepen and extend our product and service offerings tocustomers and merchants within this sector, building on our historic expertisein providing instant payment solutions within North America to those markets onwhich we are now focusing. The Board has also recognised that it is desirable to extend the use of thee-wallet through diversification into new merchant verticals and by enhancingthe offering to customers. We will do this by adding additional products andservices to the core e-wallet functionality, which will improve customers'ability to move and manage their funds both online and offline. We expect thatthis will enhance customer LTV (lifetime value) and create multiple customeracquisition channels. We see increasing sophistication in our ability tosegment our user base as a critical success factor as we move to increasing useof value-based marketing and service differentiation that is more efficient andcost effective. The Board is implementing a policy which aims to define the process it willfollow in assessing the legal and regulatory requirements of jurisdictions inwhich it targets or may in the future wish to target business. The Group, inconformity with this policy, has reaffirmed that it will observe the laws andrelevant regulatory requirements of any country in which it targets business.Where appropriate, the Group may engage local partners to assist it in complyingwith this policy. The Group has shown that it takes such matters extremelyseriously through the cessations of online gaming related transfers to customerswho were residents of Canada, Turkey and Israel in the past six months. * * * FINANCIAL REVIEW The consolidated results of the Group for the period ended 30 June 2007 includeoperations in North America during the first quarter of 2007. Performanceduring the first half of 2007 was clearly impacted, to a material extent, by theCompany's voluntary withdrawal from the US market on 18 January 2007 and thecessation of online gaming related transfers for Canadian residents on 26 March2007. These events are expected to result in a contraction of the Group'srevenue of between 70% and 75% on an annualised basis compared to 2006. Key performance indicators The Group's primary driver of revenue is the existing, active customer baserather than sign-ups. The Company discloses the Group's active customer base byprimary geographic region to enable investors to better understand and model thebusiness. An active customer is defined as a customer whose e-wallet accountbalance has changed during the quarter. The change in balance may be due toadding, removing, transferring or receiving funds. By also disclosing feerevenue from each primary geographic region, investors are able to appreciatethe revenue per active customer by geography. We anticipate being able toprovide further detailed breakdown of our active customer data in the future. Q2 2007 represents the Group's first complete quarter subsequent to the NorthAmerican withdrawal. Active customer base decreased to 117,056, a drop of 78%over the corresponding period in 2006. This includes 19,840 active customers inNorth America whose only "active" transaction was a withdrawal of funds fromtheir NETELLER e-wallet. The number of non North American active customers atthe end of Q2 2007 was 97,216, an increase of 29% from the end of Q2 2006. Theregional distribution of active customers included 76,964 in Europe (an increaseof 33% over the corresponding period in 2006) and 15,792 in Asia Pacific (up 13%from the same period in 2006). These results are very encouraging in light ofthe Group's continued focus to expand in Europe and Asia Pacific. The table below sets out our active customers by region: Active customers Q2 2007 Q2 2006 % growth Q1 2007 % growthEurope 76,964 58,066 33% 79,617 -3%Asia Pacific 15,792 14,018 13% 15,330 3%Rest of World 4,460 35% 4,633 -4% 3,297Total ex North America 97,216 75,381 29% 99,580 -2% The Group's total active customer base at end of Q2 2007 was 117,056, a drop of78% over the corresponding period in 2006. This included 19,840 North Americancustomers who were active in the second quarter. Average daily receipts from customers were approximately $1.0 million during H12007 (H1 2006: $4.68 million). The decrease of 79% was principally due to thewithdrawal from the North American market during the first quarter. Totalreceipts from customers during the period totalled $185.2 million. Our totalcustomer base (including North American customers) totalled 3,756,983 customersat 30 June 2007, an increase of 29% from the figure at 30 June 2006. The total,excluding North America, was 815,910 customers. Average daily sign-ups of new customers was 1,364 during H1 2007 (H1 2006:3,251) representing a decrease of 58%. Again, this decrease was almost entirelyattributable to the withdrawal from servicing the North American market duringQ1 2007. In Q2 2007, 937 new customers per day signed up for the Group'se-wallet. Revenue Revenue for the half year of $50.8 million included approximately $14.9 millionin revenue from North America. This represents a decrease of 57% from $118.9million for half year 2006. Fee revenue, which includes charges paid byindividual and merchant customers, decreased 62% from $110.9 million to $42.6million. Interest revenue of $8.2 million was slightly up compared with $8.0million in half year 2006. Interest revenue is expected to declinesignificantly during the second half of 2007. This is a result of cash outflowsof approximately $94 million relating to distribution of US member funds and ourfirst forfeiture payment in October 2007 of $40 million. During the first half of 2007, Europe accounted for approximately $21.2 millionin revenue before interest (an increase of 46% over $14.5 million in H1 2006),and Asia Pacific accounted for $5.4 million during H1 2007 (an increase of 46%over $3.7 million during the first half of 2006). The table below sets out our fee revenue by region and revenue from NetBanx andinterest income: Revenue H1 2007 H1 2006 % growth Q2 2007 Q1 2007 % growth ($ millions)Europe (ex NetBanx) 18.1 12.1 +50% 8.7 9.4 -7%Asia Pacific 5.4 3.7 +46% 2.9 2.5 +16%Rest of World 1.1 0.5 +120% 0.5 0.6 -17%Total Fee revenue 24.6 16.3 +51% 12.1 12.5 -3%NetBanx 3.1 2.4 +29% 1.6 1.5 +7%Interest 8.2 8.0 +2% 4.3 -9% 3.9Total 35.9 26.7 +34% 17.6 18.3 -4%North America (1) 14.9 92.2 -84% 0.5 14.4 -97%Total 50.8 118.9 -57% 18.1 32.7 -45% (1) Some residual revenue was earned from North American operations duringH1 2007 prior to the Group's withdrawal from the US and subsequently Canada. Gross margin Due to recent events and the resulting significant change in marketconcentration, gross margin has decreased to 55% (compared to 71.8 % during thesame period in 2006). The Group's contact centre operations are based in Canada, where direct costshave been exposed to the strengthening Canadian Dollar by over 9 % against ourreporting currency (US Dollar) during the first 6 months of 2007. This hascontributed to a higher cost of labour, which has become the major component ofdirect cost (compared to 2006 where largest direct cost was bad debt relating tothe North American InstaCASH product). Deposit and withdrawal fees payable increased from 6.5% of revenue to 11% ofrevenue from the first half of 2006 to the first half of 2007. The main causeof this variance is the increasing use of deposit and withdrawal options inEurope where banking solutions have been more expensive. The Company continuesto implement solutions to enable the future reduction of European banking fees. Bad debts and collections decreased 54% to $6.9 million in the first half of2007, representing 13.6% of revenues (compared to 12.6% reported for thecorresponding period in 2006). Approximately $6 million of the H1 07 bad debtexpense relates to the first half of January 2007 (prior to the North Americanwithdrawal), and the subsequent write-down of remaining North American customerreceivables. This expense item is anticipated to decline as a percentage ofrevenue during the remainder of the year. Operating expenses and restructuring costs As announced on 16 February 2007, the Group has substantially completed thenecessary reorganization and restructuring of its operations to reduce itsheadcount and align related costs with anticipated revenues of its worldwidebusiness. Following these staff reductions, which were principally in Calgarybut also in the UK, the Group continues to employ approximately 425 staff acrossits European, Americas and Asia Pacific operations. During the first half of 2007, in accordance with IAS 36, the Group completed acomprehensive write-down of all assets directly relating to the North Americanfacing business (including computer software, website development, computerhardware and software licenses). These assets were written down to theirestimated recoverable amounts. An expense of $13 million was recognised in theGroup's consolidated income statement for the six month period ended 30 June2007. Related reorganisation and restructuring costs (consisting of severance costsand retention costs for key employees) of approximately $2.7 million has beenexpensed during the first half of 2007. A total amount of $8.9 million inprofessional and legal fees incurred in the resolution of the US situation(including the distribution of funds to US customers and negotiating potentialsanctions against the Group) has been expensed in the same period. Tofacilitate ongoing cooperation under the terms of the Company's deferredprosecution agreement, an additional $10 million to $15 million of legal andprofessional fees are expected to be incurred during the remainder of the year. In aggregate these costs and write-downs are expected to total between $35million and $40 million and will be reflected in the Group's results for thefull year ending 31 December 2007. The Board believes that the Group's cost structure is now appropriate to serviceits customers worldwide, and will support revenue generation opportunities inthe growth markets of Europe and Asia Pacific. The Group's focus on innovativepayment solutions to e-commerce communities should drive the long term viabilityof the business. Share option expense is included in general and administrative expense. For thefirst six months of 2007, the share option expense was $4.5 million compared to$2.6 million in the same period of 2006. The expense is calculated based on thetrinomial model of option valuation, which is impacted by the number of optionsoutstanding and the volatility of the shares. Income tax expense The provision for income taxes for half year 2007 reflected a recovery ofapproximately $160,000, compared with an expense of $2.1 million for the sameperiod in 2006. The recovery in the first half of 2007 relates to the reversalof approximately $1.7 million in tax reserves setup in 2005 and 2006 forpotential liability in relation to the Group's global tax structure. The Grouphas recently received professional tax advice that the likelihood of a challengeon the global tax structure is remote and, furthermore, recommended the reservesbe eliminated. Although the Group's Net Income is a loss position, the Groupremains taxable. The tax model is based on a mark-up of services provided byvarious Group companies to those group companies based in the Isle of Man, wheresource revenues are non-taxable. Earnings per share (EPS) Half year basic loss per share based on weighted average shares outstanding of119,920,953 decreased 143% to ($0.20), compared to EPS for the prior half yearat $0.46. Fully diluted loss per share for the half year ended June 30, 2007was ($0.20) compared to prior year EPS of $0.46, a decrease of 143%. Cash position of the Group The total amount of cash available to the Group totalled $237.5 million at 31December 2006. The Group purchased the building in Calgary where its principaloperations are based during the first quarter of 2007 for a cost of $20 millionwhich augmented approximately $12 million in improvements the Company hadcapitalized in 2006. The Group's total cash available at 30 June 2007 totalled$210.5 million. Both of these total cash figures are stated before allowing forthe up to $60 million of funds seized by the US authorities in January 2007 andthereafter. Cash available to the group is the total of cash and "RestrictedCash" which are funds held in trust for customers and merchants in excess of therelevant liabilities. As part of the resolution with the US authorities in July 2007 the Companyagreed to forfeit a total of $136 million to the US. This amount included up to$60 million which was seized by the US authorities and which shall be applied tosatisfy a portion of NETELLER's forfeiture obligation. NETELLER agreed that itwill pay a further amount of $40 million on or before 15 October 2007, with theremaining balance to be paid on or before 17 January 2008. As part of the US resolution, the Group has implemented the Distribution Plan toreturn approximately $94 million of funds owed to US customers. Any unpaidamounts are currently held in trust accounts with the Group's European bankers.The repayment of this amount will have no impact on the Group's own cashposition. Share capital The Company received approval at the Company's Annual General Meeting on 20August 2007 to buy back up to approximately 11.9 million shares, representing10% of the Company's issued share capital of 119,920,953 ordinary shares. TheCompany's buy back programme will be opportunistic taking into account theCompany's available cash resources and other investment requirements from timeto time. Current trading and outlook During the first month of the third quarter, NETELLER has experienced seasonaltrends observed in previous years. July was a relatively flat month withunaudited revenue of approximately $5.6 million and for the first three weeks ofAugust average daily fee revenue (before interest and NetBanx) amounted toapproximately $96,365 per day. Sign-ups for the period from 1 July 2007 to 21August 2007 averaged 801 per day. The management team is working hard to implement the Group's new vision througha series of short and medium term objectives. The first of these, to solidifypre-eminence in providing payment solutions for the online gaming sector inselected markets, is well underway through the development of innovativeproducts some of which are derived from our expertise of instant payments inNorth America. Strong relationships with key merchants and customers arecritical to the achievement of our objectives. The Group has many strengths and a committed team that is dedicated torebuilding the NETELLER business. Online payments in many market sectors aregrowing rapidly and we believe that the e-wallet will continue to grow inpopularity due to its convenience and safety as more people source goods andservices through e-commerce communities. While there is much work to do andmany challenges lie ahead, we believe that the Company is well positioned tobenefit from these trends. I look forward to being able to provide you withfurther updates on our progress in due course. RON MARTINPresident & CEO 23 August 2007 INDEPENDENT REVIEW REPORT TO NETELLER PLC We have reviewed the accompanying consolidated balance sheet of NETELLER Plc at30 June 2007 and the related consolidated statements of income, cash flows andchanges in equity for the six month period then ended. These financialstatements are the responsibility of the Company's management. Ourresponsibility is to issue a report on these financial statements based on ourreview. This report is made solely to the Company, in accordance with the InternationalStandard on Review Engagements (ISRE) 2400. Our work has been undertaken sothat we might state to the Company those matters we are required to state tothem in an independent review report and for no other purpose. To the fullestextent permitted by law, we do not accept or assume responsibility to anyoneother than the Company, for our review work, for this report, or for theconclusions we have formed. We conducted our review in accordance with the International Standard on ReviewEngagements (ISRE) 2400. This Standard requires that we plan and perform thereview to obtain moderate assurance as to whether the financial statements arefree of material misstatement. A review is limited primarily to inquiries ofcompany personnel and analytical procedures applied to financial data and thusprovides less assurance than an audit. We have not performed an audit and,accordingly, we do not express an audit opinion. Based on our review, nothing has come to our attention that causes us to believethat the accompanying financial statements do not give a true and fair view inaccordance with International Financial Reporting Standards. KPMGChartered AccountantsDouglasIsle of Man 21 August 2007 NETELLER PLC Consolidated Income Statement for the six month period ended 30 June 2007 (Unaudited) Six month period ended 30 Six month period ended 30 June 2007 June 2006 US$ US$ Revenue Transaction fees 42,609,981 110,877,396 Investment income 8,234,489 8,017,153 50,844,470 118,894,549Cost of sales Customer support (6,960,267) (8,157,987) Website maintenance (3,589,352) (2,626,359) Deposit and withdrawal fees (5,601,638) (7,748,267) Bad debts and collections (6,931,165) (15,004,884)Gross profit 27,762,048 85,357,052 Operating expenses General and administrative (21,624,378) (20,770,021) Management bonus (712,657) (1,949,710) Foreign exchange (loss) gain (685,315) 303,452 Depreciation and amortisation (4,778,644) (4,936,957) Restructuring costs (Note 8) (11,611,519) - Asset write down (Notes 5 & 6) (13,014,866) - Profit (loss) before tax (24,665,331) 58,003,816 Income tax recovery (expense) 160,398 (2,126,407) Net profit (loss) for the period (24,504,933) 55,877,409 Basic earnings (loss) per share (Note 9) $ (0.20) $ 0.46 Fully diluted earnings (loss) per share (Note 9) $ (0.20) $ 0.46 See accompanying notes to the consolidated financial statements. NETELLER PLC Consolidated Balance Sheet (Unaudited) As at 30 June 2007 30 June 31 December 2007 2006 US$ US$ ASSETSCURRENT ASSETSCash and cash equivalents 136,989,895 216,165,164Restricted cash (Note 3) 56,479,027 11,995,217Qualifying Liquid Assets held for European customers (Note 4) 67,298,609 63,425,683Receivable from customers 403,000 2,625,000Trade and other receivables 855,973 866,109Prepaid expenses and deposits 4,296,365 3,582,140 266,322,869 298,659,313NON-CURRENT ASSETSCapital assets (Note 5) 39,841,555 25,540,456Intangible assets (Note 6) 16,012,957 23,880,558Goodwill 11,884,465 11,646,188 334,061,846 359,726,515 LIABILITIESCURRENTTrade and other payables 20,433,931 18,199,379Payable to European customers (Note 4) 50,304,192 54,058,047Income taxes payable 3,426,594 4,901,296Conditional consideration payable - 2,596,749 74,164,717 79,755,471 SHAREHOLDERS' EQUITYShare capital (Note 7) 39,725 39,725Share premium 50,554,492 50,554,492Capital redemption reserve 147 147Equity reserve on share option issuance 14,131,730 9,683,697Translation reserve 1,332,183 1,349,198Accumulated profits 193,838,852 218,343,785 259,897,129 279,971,044 334,061,846 359,726,515 See accompanying notes to the consolidated financial statements NETELLER PLC Consolidated Statement of Changes in Equity (Unaudited) For the six month period ended 30 June 2007 Share Share Total share Share Equity Translation Capital Accumulated Total capital - capital- capital premium reserve on reserve on redemption profits ordinary deferred share foreign reserve shares shares option operations issuance Balance asat1 January 21,794 18,000 39,794 48,410,150 3,576,870 (1,497,326) - 124,533,076 175,062,5642006Issue ofordinarysharesduring the 77 - 77 2,078,002 - - - - 2,078,079periodRepurchase (94) - (94) - - - 94 (5,431,163) (5,431,163)of ordinarysharesduring theperiodEquity reserve onoption - - - - 2,574,816 - - - 2,574,816issuanceTranslation reserve onforeign - - - - - 1,440,490 - - 1,440,490operationsNet profit - - - - - - - 55,877,409 55,877,409for theperiod Balance as 21,777 18,000 39,777 50,488,152 6,151,686 (56,836) 94 174,979,322 231,602,195at 30 June2006 Issue of 1 - 1 66,340 - - - - 66,341ordinarysharesduring theperiodRepurchase (53) - (53) - - - 53 (3,229,541) (3,229,541)of ordinarysharesduring theperiodEquity reserve onoption - - - - 3,532,011 - - - 3,532,011issuanceTranslation reserve onforeign - - - - - 1,406,034 - - 1,406,034operationsNet profit - - - - - - - 46,594,004 46,594,004for theperiod Balance asat1 January 21,725 18,000 39,725 50,554,492 9,683,697 1,349,198 147 218,343,785 279,971,0442007 Equity - - - - 4,448,033 - - - 4,448,033reserve onoptionissuanceTranslation - - - - - (17,015) - - (17,015)reserve onforeignoperationsNet profit - - - - - - - (24,504,933) (24,504,933)for theperiod Balance asat 30 June2007 21,725 18,000 39,725 50,554,492 14,131,730 1,332,183 147 193,838,852 259,897,129 See accompanying notes to the consolidated financial statements NETELLER PLC Consolidated Statement of Cash Flows (Unaudited) For the six month period ended 30 June 2007 Six months Six months ended 30 June ended 30 June 2007 2006 US$ US$OPERATING ACTIVITIESProfit (loss) before tax (24,665,331) 58,003,816 Adjustments for: Depreciation and amortisation 4,778,644 4,936,957 Unrealised foreign exchange loss (gain) (26,336) (1,782,746) Share option expense 4,448,033 2,574,816 Asset write down (Notes 5 & 6) 13,014,866 -Operating cash flows before movements in working capital (2,450,124) 63,732,843 Decrease in receivable from customers 2,218,385 (611,874) Decrease in trade and other receivables 10,136 (1,520,953) Increase in prepaid expenses and deposits (1,021,888) (3,845,897) Increase in trade and other payables 2,217,159 1,383,717Cash generated by operations 973,668 59,137,836 Income tax paid (1,314,305) (709,793) Net cash from operating activities (340,637) 58,428,043 INVESTING ACTIVITIES Decrease in payable to European customers (3,753,855) 12,375,577 Purchase of capital and intangible assets (23,919,344) (15,134,675) Increase in restricted cash accounts (44,483,810) (14,368,038) Increase in Qualifying Liquid Assets held for European (3,872,927) (16,471,485)customers Net cash used in the investing activities (76,029,936) (33,598,621) FINANCING ACTIVITIES Conditional consideration payable (2,482,330) (2,605,999) Proceeds on issuance of shares, net of share issuance costs - 2,078,079 Repurchase of ordinary shares - (5,431,164) Net cash generated from financing activities (2,482,330) (5,959,084) DECREASE IN CASH AND CASH EQUIVALENTSDURING THE PERIOD (78,852,903) 18,870,338 NET EFFECT OF FOREIGN EXCHANGE ON: CASH AND CASH EQUIVALENTS (305,351) 1,040,133 TRANSLATION OF FOREIGN OPERATIONS (17,015) 1,440,490 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 216,165,164 114,570,429 CASH AND CASH EQUIVALENTS, END OF PERIOD 136,989,895 135,921,390 In addition to "Cash and Cash Equivalents", the Group as at 30th June 2007 hadsubstantial surplus cash accumulated in "Restricted Cash" and "Qualifying LiquidAssets held for European customers". These cash balances are assets belongingto the Group and are represented by the excess of funds held in trust with theGroup's bankers against customer / merchant liabilities shown as at the BalanceSheet date. Total excess funds, classified separately from "Cash and CashEquivalents", includes the surplus cash held in trust accounts for Non-Europeancustomers and merchants of $56.5m and the surplus held in "Qualifying LiquidAssets" for European customers of $17 million providing a total of $73.5m inaddition to the $137 million shown above as "Cash & Cash Equivalents, end ofperiod". It is Group policy to retain an excess balance of between 5% and 10% ofcustomer / merchant liabilities on the trust accounts to cover any intra-daytransactions arising from normal business activity on customer / merchantaccounts thus ensuring that all potential customer / merchant liabilities arecovered in full. The balances reflected above are abnormally high and have sincebeen adjusted to within Group policy. 1. Basis of presentation The principal operating currency of the Group is US dollars and accordingly thefinancial statements have been prepared in US dollars. The interim results forthe period ended 30 June 2007 are unaudited and do not constitute statutoryaccounts within the meaning of the Companies Acts 1931 to 2004. The statutoryaccounts of NETELLER PLC for the year ended 31 December 2006 have been filedwith the Registrar of Companies and contain an unqualified audit report. Furthercopies can be obtained from the Registered Office of the Company, Bourne House,97 Woodbourne Road, Douglas, Isle of Man, IM2 3AW 2. Significant accounting policies The interim results for the period ended 30 June 2007 have been prepared inaccordance with the accounting policies adopted in the accounts for the yearended 31 December 2006 and in accordance with IAS 34 "Interim FinancialReporting". 3. Restricted cash The Group holds trust accounts which are segregated from operating funds.Balances in the trust accounts are maintained at a sufficient level to fullyoffset amounts owing to NETELLER merchants and customers. A legal right ofoffset exists between the balances owing to the customers and merchants and thecash balances segregated in the trust accounts. As such, only the net balance ofsurplus cash is disclosed on the balance sheet as Restricted Cash. At 30 June 2007, the Group has the following balances: TRUST BALANCE RESTRICTED ACCOUNT FUNDS OWING CASH $ $ $ Customers 136,628,173 112,610,557 24,017,616 Merchants 78,239,300 45,777,889 32,461,411 214,867,473 158,388,446 56,479,027 At 31 December 2006, the Group has the following balances: TRUST BALANCE RESTRICTED CASH ACCOUNT OWING FUNDS $ $ $ Customers 133,380,557 130,687,546 2,693,011 Merchants 130,946,747 121,644,541 9,302,206 264,327,304 252,332,087 11,995,217 4. Qualifying Liquid Assets held for European customers In compliance with the Financial Services Authority rules and regulations, theGroup holds Qualifying Liquid Assets at least equal to the amounts owing toEuropean customers. These amounts are maintained in accounts which aresegregated from operating funds. The Group has the following balances: As at 30 As at 31 June 2007 December 2006 $ $Qualifying Liquid Assets held for European customers 67,298,609 63,425,683Payable to European customers (50,304,192) (54,058,047) 16,994,417 9,367,636 5. PROPERTY, PLANT & EQUIPMENT The Group has the following balances: COMMUNICATION FURNITURE COMPUTER COMPUTER BUILDING AND LAND TOTAL EQUIPMENT AND EQUPMENT EQUIPMENT SOFTWARE IMPROVEMENTS $ $ $ $ $ $ $ CostAs at 31 December 2005 803,555 1,092,200 2,890,596 2,978,797 3,009,651 936,396 11,711,195Additions 722,334 238,193 644,693 3,295,346 5,216,456 - 10,117,022As at 30 June 2006 1,525,889 1,330,393 3,535,289 6,274,143 8,226,107 936,396 21,828,217Additions 1,573,872 981,712 655,748 1,983,520 4,622,109 - 9,816,961As at 31 December 2006 3,099,761 2,312,105 4,191,037 8,257,663 12,848,216 936,396 31,645,178Additions 166,333 192,416 41,178 1,310,368 13,873,655 5,622,351 21,206,301Write-down - - (747,848) (4,476,328) - - (5,224,176)As at 30 June 2007 3,266,094 2,504,521 3,484,367 5,091,703 26,721,871 6,558,747 47,627,303AccumulateddepreciationAs at 31 December 2005 183,741 122,510 758,636 915,085 206,375 - 2,186,347Charge for the period 112,575 129,158 517,216 795,397 55,164 - 1,609,510As at 30 June 2006 296,316 251,668 1,275,852 1,710,482 261,539 - 3,795,857Charge for the period 273,441 173,660 445,679 951,503 464,582 - 2,308,865As at 31 December 2006 569,757 425,328 1,721,531 2,661,985 726,121 - 6,104,722Charge for the period 327,854 227,805 376,741 868,508 736,650 - 2,537,557Write-down - - - (856,531) - - (856,531)As at 30 June 2007 897,611 653,133 2,098,272 2,673,962 1,462,771 - 7,785,748Net book valueAs at 30 June 2006 1,229,573 1,078,725 2,259,437 4,563,661 7,964,568 936,396 18,032,360Net book valueAs at 31 December 2006 2,530,004 1,886,777 2,469,506 5,595,678 12,122,095 936,396 25,540,456Net book valueAs at 30 June 2007 2,368,483 1,851,388 1,386,095 2,417,741 25,259,100 6,558,747 39,841,555 Computer equipment and computer software write down In the first half of fiscal 2007, the Group recorded a write down of $4.4million related to computer equipment and computer software assets. The Groupidentified the cost restructuring from the North American market withdrawal asindication of asset impairment. Excess computer equipment was disposed fornominal proceeds and written down to nil net book value. The carrying amount ofcomputer software was written down to the estimated recoverable amount based onfuture cash flows expected from non-North American markets. 6. INTANGIBLE ASSETS The Group has the following balances: INTELLECTUAL PROPERTY WEBSITE DEVELOPMENT TOTAL $ $ $CostAs at 31 December 2005 24,138,156 8,696,016 32,834,172Additions 583,199 4,601,357 5,184,556As at 30 June 2006 24,721,355 13,297,373 38,018,728Additions 740,538 4,506,878 5,247,416Impairment loss (7,405,694) - (7,405,694)As at 31 December 2006 18,056,199 17,804,251 35,860,450Additions 334,311 2,524,471 2,858,782Write-down - (11,866,305) (11,866,305)As at 30 June 2007 18,390,510 8,462,417 26,852,927Accumulated amortizationAs at 31 December 2005 5,327,230 703,366 6,030,596Charge for the period 2,000,303 1,356,882 3,357,185As at 30 June 2006 7,327,533 2,060,248 9,387,781Charge for the period 1,995,327 2,075,175 4,070,502Impairment loss (1,478,391) - (1,478,391)As at 31 December 2006 7,844,469 4,135,423 11,979,892Charge for the period 711,637 1,675,188 2,386,825Write-down - (3,526,747) (3,526,747)As at 30 June 2007 8,556,106 2,283,864 10,839,970Net book valueAs at 30 June 2006 17,393,822 11,237,125 28,630,947Net book valueAs at 31 December 2006 10,211,730 13,668,828 23,880,558Net book valueAs at 30 June 2007 9,834,404 6,178,553 16,012,957 Intangible asset write down In the first half of fiscal 2007, the Group recorded a write down of $8.3million related to website development assets. The Group identified thecessation of transaction processing in the North American market as indicationof asset impairment. The carrying amount was written down to the estimatedrecoverable amount based on future cash flows expected from non-North Americanmarkets. 7. Share capital Six months ended Year 30 June ended 2007 31 December 2006 £ £Authorised:200,000,000 ordinary shares of £0.0001 per share 20,000 20,000 1,000,000 deferred shares of £0.01 per share 10,000 10,000 Issued and fully paid US$ US$ 119,920,953 ordinary shares of £0.0001 per share (At 31 December 2006: 119,920,953 ordinary shares of £0.0001 21,725 21,725 per share) 1,000,000 deferred shares of £0.01 per share 18,000 18,000 Total share capital 39,725 39,725 Holders of the ordinary shares are entitled to receive dividends and otherdistributions, to attend and vote at any general meeting, and to participate inall returns of capital on winding up or otherwise. Holders of the deferred shares are not entitled to vote at any annual generalmeeting of the Company, and are only entitled to receive the amount paid up onthe shares after the holders of the ordinary shares have received the sum of£1,000,000 for each ordinary share held by them and shall have no other right toparticipate in assets of the Company. 8. Restructuring costs The Group continues to incur certain costs in 2007 pertaining to the withdrawalfrom its North American-facing business (see Note 11). These costs includerelated reorganisation and restructuring costs consisting of severance costs andretention costs for key employees, and professional and legal fees incurred inthe resolution of the US situation (including the distribution of funds to UScustomers and negotiating potential sanctions against the Group). The Group has incurred the following costs: Period ended 30 June 2007 $Severance and retention 2,721,612Professional and legal 8,889,907 11,611,519 9. Earnings (loss) per share From continuing operations The calculation of the basic and diluted earnings per share is based on thefollowing data: Six months Six months ended 30 June ended 30 June 2007 2006 US$ US$ Earnings (loss)Earnings (loss) for the purposes of basic and dilutedearnings per share being net profit attributable to equity share holders of the (24,504,933) 55,877,409 parent Number of sharesWeighted average number of ordinary shares for the purpose of basic earnings per share 119,920,953 120,455,213 Effect of dilutive potential ordinary shares due to employee - 1,655,095share options Weighted average number of ordinary shares for the purpose of diluted earnings per share 119,920,953 122,110,308 Basic earnings (loss) per share $(0.20) $0.46 Fully diluted earnings (loss) per share $(0.20) $0.46 10. Share-based payments The Group's share option plan was adopted pursuant to a resolution passed on 7April 2004. Under this plan, the Board of Directors of the Company may grantshare options to eligible employees including directors to subscribe forordinary shares of the Group. No consideration is payable on the grant of an option. Options may generally beexercised to the extent that it has vested. Options vest equally over a threeyear term following date of grant. The exercise price is determined by the Boardof Directors of the Group, and shall not be less than the market value at thedate of grant. The Group plan provides for a grant price to equal the averagequoted market price of the Company shares on the three days prior to the date ofgrant. Share options are forfeited if the employee leaves the Group before theoptions vest. A participant of the share option plan has 30 days following thedate of grant to surrender the option and if surrendered, the option will not bedeemed granted. On 5 January 2007, the Company granted 3,725,000 share options to Directors andeligible employees to acquire ordinary shares at an exercise price of £1.38 pershare, expiring on 14 April 2010. Equity-settled share option plan Six months ended Six months ended Year ended 31 Year ended 31 30 June 2007 30 June 2007 December December 2006 2006 Weighted Weighted average exercise Options average exercise Options price price Outstanding at the beginning £6.00 6,458,350 £4.94 5,898,580of period Granted during the period £1.38 3,725,000 £7.95 2,250,000 Forfeited during the period £5.66 (541,575) £5.48 (1,237,430) Exercised during the period - - £2.67 (452,800) Outstanding at the end of £4.23 9,641,775 £6.00 6,458,350period Exercisable at the end of the £4.65 4,248,140 £4.62 1,791,978period The options outstanding at the end of the period had a weighted averageremaining contractual life of 1.96 years (31 December 2006: 1.94 years). The options granted are priced using a trinomial lattice model to reflectfactors including employee exercise behaviour, option life and optionforfeitures. The inputs into the model are as follows: Six months ended 30 Year ended 31 June 2007 December 2006 Average share price £1.54 £4.85 Weighted average exercise price £1.38 £7.95 Expected volatility 84% 56% Expected life 3 years 3 years Risk free interest rate 5.0% 4.5% Expected dividends - - Employee exit rate 6% 9% Expected volatility was determined by calculating the historical volatility ofthe Group's share price from the time of issue to the date of grant. Theexpected life used in the model has been adjusted, based on management's bestestimate, for the effects of non-transferability, exercise restrictions, andbehavioural considerations. The Group recognised total expenses of US$4,448,033 (Six months ended June 30,2006: US$2,574,816) related to the equity-settled share-based paymentstransactions in the period. 11. Subsequent Events US situation On 18 July 2007, the Company entered into a Deferred Prosecution Agreement ("DPA") with the United States Attorney's Office for the Southern District ofNew York ("USAO"). Pursuant to the DPA, the Company consented to the filing of acriminal information relating to transactions between internet gamblingmerchants and persons located in the United States. The USAO agreed to defer theprosecution of any federal charges and, as a consequence, the Company will notbe convicted of a federal crime, as long as the Company fulfils the setconditions of the DPA during the two-year term of the agreement. At theconclusion of the two-year term, the criminal information will be dismissed. As part of the DPA, the Company also agreed to forfeit $136 million to the US asdisgorgement of certain profits received by the Company from the activitiesdescribed in the Statement of Admitted Facts attached to the DPA. This amountincluded the amount of funds seized by the USAO of up to approximately $60million which the USAO agreed shall be applied to satisfy a portion ofNETELLER's forfeiture obligation. NETELLER agreed that it will satisfy theremaining portion of its forfeiture obligation with a payment of $40 million tobe paid on or before 15 October 2007, and the remaining balance to be paid on orbefore 17 January 2008. Further, as part of the DPA, the Company agreed to cooperate fully with the USauthorities in all matters relating to the ongoing investigations by the USAO.The Company also agreed to fully implement procedures and controls to preventillegal transactions between internet gambling merchants and persons located inthe US and to continue to retain Navigant Consulting Inc. to monitor theCompany's compliance with these procedures and controls. The Group's withdrawal from both the US and the Canadian markets in early 2007will have a material negative impact on the Group's financial performance forthe year ending 31 December 2007, and is expected to result in a contraction ofthe Group's revenue of between 70% and 75% for that period on an annualisedbasis. Furthermore, the Group continues to incur certain additional costs in2007 pertaining to the withdrawal from its North American-facing business. Thesecosts include professional and legal fees incurred in the resolution of the USsituation (including the distribution of funds to US customers and negotiatingpotential sanctions against the Group). Remaining costs of $10 to $15 millionare anticipated. Property sales The Group has received and accepted a conditional Letter of Intent for thepurchase of Calgary property located on 27th Avenue which is expected to lead toa sale agreement closing in the fourth quarter of 2007. Expected proceeds ofthe sale are approximately CAD $39 million. Pursuant to this agreement, theGroup will continue to lease facilities at this location. The Group has entered into a sale agreement for Calgary property located on 41stAvenue. The agreement is expected to close on 31 August 2007 for proceeds ofapproximately CAD $4 million, with CAD $0.75 million payable as a vendor takeback mortgage over three years. Investment Subsequent to 30 June 2007, the Group has completed the acquisition of a stakeof up to 25% on a fully diluted basis of the common shares of Centricom PtyLimited for up to AUD$5 million (approximately $4 million). The investment isexpected to be completed by 31 March 2008. Litigation The Group is aware of potential litigation resulting from an alleged breach ofcontract with a vendor. No claim has been filed and the outcome and potentialdamages are unknown. NETELLER PLC Additional Financial Information Additional Financial InformationThe additional information presented below has been prepared for informationpurposes only.Please note that this information is outside of the scope of the audited financial statements Q2 - 2007 Q1 - 2007 Q2 - 2006 Q2 2007 vs Q2 2007 vs Q1 2007 Q2 2006 US$ US$ US$ % change % change Revenue 18,180,298 32,664,171 61,003,026 -44% -70%Direct Costs 7,201,988 15,880,434 18,215,995 -55% -60%Gross profit 10,978,310 16,783,737 42,787,031 -35% -74% General and Admin 7,423,138 9,753,207 9,386,773 -24% -21%Operating income 3,555,171 7,030,530 33,400,258 -49% -89% Other income (expense)Foreign exchange gain (375,963) (309,352) 768,950 22% -149% Management bonus (337,878) (374,779) -Depreciation andAmortisation (1,920,405) (2,858,239) (2,527,670) -33% -24%Stock option expense (2,224,016) (2,224,016) (1,379,661) 0% 61% Impairment loss - - -Restructuring costs (8,262,566) (3,348,952) - 147%Asset write down (1,003,098) (12,011,768) - -92%Income before tax (10,568,755) (14,096,576) 30,261,877 -25% -135% Income taxes (1,089,757) 929,360 929,316 -217% -217% Net income after tax (9,478,998) (15,025,936) 29,332,561 -37% -132% Daily sign ups 937 1,797 2,898 -48% -38%Total customers (at 3,756,983 3,671,724 2,909,190 2% 29%period end) Total active customers 117,056 385,781 535,853 -70% -78%(in quarter) Average daily receipts 339,314 1,714,807 4,663,174 -80% -93%from customers Total customer receipts 30,877,606 154,332,615 424,348,841 -80% -93% This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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