9th Nov 2009 07:00
NEOVIA Financial Plc
Trading statement
Monday, 9 November 2009 - NEOVIA Financial Plc ("NEOVIA", the "Company" or "Group") (NEO.L), the independent online payments business, today issues a trading update for the third quarter, being the three month period from 1 July 2009 to 30 September 2009, in advance of reporting full year results for the twelve month period ending 31 December 2009.
|
Trading performance for the period in line with market expectations, despite continuing challenging market conditions. |
|
|
Fee revenue of $14.9 million vs $15.7m in Q2 2009. |
|
|
Active e-wallet users of 98,357 up 3% from Q2 2009; daily sign ups increased 9% to 1,115 over same period. |
|
|
Newteller platform on track to launch fully in Q1 2010. |
Total revenue for the period was $15.1m, a decrease of 6% from Q2 2009 and down 21% compared to the third quarter of 2008. Fee revenue at $14.9m (Q2 2009: $15.7m; Q3 2008: $17.5m) represented 98% of total revenues with the significantly reduced deposit rates attaching to Group cash balances delivering minimal interest income in the period. Reported fee revenue in the period was net of a $1.3m reduction in fees charged to NETBANX Asia customers (offset by an equivalent reduction in fee rebates, hence gross margins were maintained). Overall fee revenues for the second half of 2009 are expected to be similar to those for the first half of the year.
The number of active e-wallet users in the period increased to 98,357, up 3% from Q2 2009 (95,492), and 1% ahead of the third quarter in 2008 (97,447), with growth being seen in Europe and Asia Pacific regions quarter on quarter. Sign ups of new e-wallet users have also shown positive trends, with 1,115 new average daily sign ups in the quarter, up 9% from Q2 2009 (1,022) and up 20% from Q3 2008 (929). However, the trend for active e-wallet users to generate lower fees per user, as seen in the first half of 2009, is continuing.
The Group continues to make progress in diversification, with a number of significant contract wins for the NEOVIA Payment Suite including MoreTh>n, a number of MMOG merchants and the renewal of the Group's contract with npower. The Group has also added new payment options including PayPal to its NETBANX full service payment processing offering and has extended the UKash deposit option to nine further European countries.
The Newteller platform is currently running in parallel with the existing system and the Group expects to complete the full switch over to Newteller on schedule in Q1 2010.
Given current economic conditions, the Board continues to take a prudent view of the Group's short term outlook and continues to maintain tight control over operating costs and cash management.
For further information contact:
|
NEOVIA Financial Plc Andrew Gilchrist VP Communications Email: [email protected] Twitter: https://twitter.com/neovia
|
+ 44 (0) 1624 698 713 |
|
Citigate Dewe Rogerson Sarah Gestetner / George Cazenove |
+ 44 (0) 207 638 9571 |
|
Daniel Stewart & Co Plc Paul Shackleton |
+ 44 (0) 207 776 6550 |
* * * * *
About NEOVIA Financial
Trusted by consumers and merchants in over 160 countries to move and manage billions of dollars each year, NEOVIA Financial Plc operates the world's leading independent online payments business. Through its Payment Suite, featuring NETELLER®, NETBANX®, Net+™ and 1-PAY™ brands, NEOVIA 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 NEOVIA to support thousands of retailers and merchants in many geographies and across multiple industries.
NEOVIA Financial Plc is quoted on the London Stock Exchange's AIM market, with a ticker symbol of NEO. Subsidiary company NETELLER (UK) Limited is authorised by the Financial Services Authority (FSA) to operate as a regulated e-money issuer. For more information about NEOVIA Financial visit www.neovia.com or subscribe at www.neovia.com/feeds/.
Related Shares:
Paysafe Group