10th Jul 2006 07:01
NETeller PLC10 July 2006 Pre-Close Period Update NETELLER Plc (LSE: NLR), a leading online money transfer service provider, todaymakes the following statement in advance of entering into a close period priorto the publication of its interim results for the half year ended 30 June 2006. The continued demand for NETELLER's online payment services experienced in 2005carried over into the first half of 2006. We have added more than 500,000 newcustomers since the year end with our customer base increasing from 2,320,670customers at 31 December 2005 to 2,909,190 customers at 30 June 2006. In thefirst half of 2006, our average daily receipts from customers grew 56 % to $4.68million ($4.69 million in Q1 and $4.66 million in Q2) which compares to $3.0million in the same period in 2005. Average daily sign-ups of new customers increased by 19 % to 3,251 in the firsthalf of 2006 (3,609 in Q1 and 2,898 in Q2) compared to 2,732 in the first halfof 2005. Growth in new customer sign-ups has historically been strongest in thefirst and third quarters although the decline in the average daily sign-up ratewe experienced in Q2 2006 was more pronounced than in previous years. Revenue for the quarter ended 30 June 2006 is expected to be in line with ourhouse broker's forecasts. Gross margin in Q2 2006 will be impacted by slightlyhigher than expected bad debts. Cost pressures highlighted in Q1 2006 relatingto our Calgary operations have remained a factor in Q2 2006. These additionalcosts will, to a large extent, be offset by one-off gains in foreign exchangeand a lower than anticipated tax charge for the quarter. The expansion of our customer base in this period has been accompanied by growthin our merchant base which exceeded 3,500 as at 30 June 2006. In this period wehave added a number of major merchants, particularly in Europe, including PaddyPower, Unibet, UK Betting, Nordicbet and PKR.com. We continue to attract newonline gaming and target selected non-gaming related merchants by providingtrusted, secure and innovative payment services while improving our offering toboth merchants and customers through added geographic coverage and productfunctionality. Since 14 June 2006, the Company has purchased 800,000 of its own shares in themarket for a total cost of £4.6 million for cancellation. These purchases arepart of the Company's ongoing opportunistic buy back programme. NETELLER's interim results for the period ended 30 June 2006 are expected to beannounced on Monday 11 September 2006. Enquiries: NETELLER PlcAndrew Gilchrist, Vice President - Communications +44 (0) 1293 555 726 Citigate Dewe Rogerson Sarah Gestetner/Seb Hoyle/George Cazenove +44 (0) 207 638 9571 Notes to Editors The NETELLER Group With over 2.9 million customers in 160 countries and more than $7 billion inannual transactions, the NETELLER Group operates the largest independent onlinemoney transfer business in the world. The Group specializes in providinginnovative and instant payment services where money transfer is difficult orrisky due to identity, trust, currency exchange, or distance. Being independenthas allowed the Group to support over 3,500 retailers and merchants in manygeographies and across multiple industries. The Group is one of the largest companies quoted on the London Stock Exchange'sAIM market, with a ticker symbol of NLR. NETELLER UK Limited is authorised bythe Financial Services Authority (FSA) to operate as a regulated e-money issuer.For more information about the Group visit www.netellerplc.com. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Paysafe Group