26th Mar 2007 07:04
NETeller PLC26 March 2007 Press release NETELLER Announces Service Changes to Canadian and Turkish Market Monday, 26 March 2007 - The NETELLER Plc Group ("NETELLER" or the "Group") (LSE:NLR), the leading global independent online money transfer business, todayannounced several significant changes to its services in a number of markets. The Group continually assesses the risk profile and status of the markets itsserves. Recent actions by regulators, payment processors, and online gamingoperators have increased the uncertainty around certain activities related toonline gambling in some jurisdictions. The Board of Directors of the Companyreached a decision, on 25 March 2007, that the risk to the Group's ongoingbusiness in Canada and Turkey has increased in the light of such developments.The Board has therefore concluded that the Group will no longer processtransfers related to online gambling sites on behalf of Canada or Turkeyresident customers. Reduced Service to Canada • Cessation of Canadian transfers to gambling merchants: the Group will cease processing online gambling related transactions for Canada-resident customers with effect from 12.01 AM MST Monday 9 April 2007. • Suspension of InstaCASH transactions: As of today Monday 26 March 2007, at 12:01 AM MST, Canada-resident customers were no longer able to deposit funds using NETELLER's instaCASH service either directly or from any online gambling site. • Non-gambling services continue: Canada-resident customers will continue to be able to use their e-wallet accounts for non-gambling transactions, including peer-to-peer and pre-paid debit transactions. • Available customer funds: Customer funds, including those of Canadian residents, are held in a pooled, segregated trust account and will be available for withdrawal by customers, on demand. Canadian customers continue to be able to use their e-wallet accounts for non-gambling transactions. Reduced Service to Turkey In light of recent legislation passed in Turkey on 28 February 2007, whichprohibits certain forms of online gambling to be offered by any "unauthorised"domestic or foreign company to citizens in Turkey, NETELLER has decided toimplement a voluntary phased withdrawal of the payment services related toonline gambling that it offers customers to the Turkish market. • Withdrawal of local bank funding options: Local bank deposit options for Turkey-resident customers were withdrawn on Friday 9 March 2007. • Cessation of Turkish transfers to and from online gambling merchants: The Group has ceased processing online gambling related transactions for Turkey-resident customers with effect from 6.01 AM GMT Monday 26 March 2007. • Non-gambling related services continue: Turkey-resident customers will be able to continue to use their NETELLER e-wallet account for any non-gambling related money transfers and withdrawals. Customers located in other parts of the world are not affected by this change, and NETELLER continues to service these customers in the normal manner. Group Business Impact The Canadian business of the NETELLER Group would likely have contributedsignificantly to the Group's revenue and profitability during 2007 and the lossof this business is now likely to have a material negative impact on the Group'sresults for the full year ending 31 December 2007. The Turkish business of theGroup does not represent a material proportion of the Group's overall customerbase, revenue or profitability. The Group does not anticipate making further significant reductions in staff asa result of these service changes as the Board believes that its Calgary-basedoperations are appropriately sized to handle the remaining non-North Americanbusiness of the Group. The Group will continue to focus on the growth marketsof Europe and Asia. Other Updates The Group's shares will continue to be suspended from trading on AIM in view ofthe continuing uncertainties the Group faces. Further announcements will be madeas appropriate. The Company is working towards the finalisation of its audited annual resultsfor the year ended 31 December 2006 and will announce the date on which thesewill be published to the market in due course. The Company would, in light of recent press comment concerning its announcementof 21 March 2007, like to make clear that the 75 day period referred to in thatannouncement was for agreement of a plan of distribution with the United StatesAttorney's Office. It would remain to be determined, as part of that plan, theprecise timing of the distribution of funds to US customers. Further information is available on the Group's website in the form of updatedFAQs at http://www.neteller-group.com/content/en/news_media_faqs_index.htm. Enquiries: Citigate Dewe Rogerson + 44 (0) 207 638 9571Sarah Gestetner/Sebastian Hoyle/George Cazenove Notes to Editors The NETELLER Group Trusted by millions of consumers to transfer billions of dollars each year, theNETELLER Group operates the largest independent online money transfer businessin the world. The Group specialises in providing innovative and instant paymentservices where money transfer is difficult or risky due to identity, trust,currency exchange, or distance. Being independent has allowed the Group tosupport thousands of retailers and merchants in many geographies and acrossmultiple industries. The Group is quoted on the London Stock Exchange's AIM market, with a tickersymbol of NLR. NETELLER UK Limited is authorised by the Financial ServicesAuthority (FSA) to operate as a regulated e-money issuer. For more informationabout the Group visit www.neteller-group.com. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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