11th Jan 2008 07:01
NETeller PLC11 January 2008 NETELLER Plc Pre-close trading update Board confident 2007 results to meet market expectations - building momentum into 2008 Friday, 11 January 2008 - NETELLER Plc (LSE: NLR), the independent global onlinepayments business, is pleased to provide a trading update in respect of itspreliminary results for the year ended 31 December 2007, which the Companyintends to release on Tuesday, 11 March 2008. Trading update The Board announces that the Group's operating businesses have traded in linewith management's expectations in the fourth quarter and the Board is confidentthat the full year results for the Group will meet market expectations. The Company will make the final payment of US$ 38.25 million on 16 January 2008to the US authorities in respect of its obligations under the deferredprosecution agreement. This amount reflects recent discussions with USauthorities confirming that US$ 57.7 million of the Group's funds were seized,as opposed to the US$ 60 million previously thought and announced. The totalamount to be paid to the US authorities in connection with this matter remainsthe same as previously announced (US$ 136 million). As part of the arrangements with the USAO, the Group implemented theDistribution Plan to return approximately US$ 94 million of funds owed to UScustomers. The Group has to date repaid approximately US$ 81 million of thisamount. Any unpaid amounts are currently held in trust accounts with the Group'sbank. Under the terms of the Distribution Plan, US customers have until 26January 2008 to withdraw their funds using the NETELLER website. The sale of the Group's principal Calgary property has been delayed as a resultof the lenders for the intended purchaser introducing significantly lessattractive terms in the wake of the recent developments in North Americanfinancial markets. Consequently, the final condition to the Purchase and SaleAgreement for the property has not been satisfied. Constructive discussionswith the intended purchaser and its lenders are continuing but there can be nocertainty that a transaction will be concluded. However, the Group isoptimistic about achieving a sale in due course given the current strength ofthe Calgary property market. The Group has also recently concluded a settlement with a third party vendor whohad commenced litigation against the Group for alleged breach of contract (aspreviously disclosed in the Group's interim statement of 23 August 2007), payingan amount of approximately CAD$ 1.75 million to settle any potential claims. Building Momentum into 2008 During 2008 the Group will deliver a significant number of initiatives insupport of its strategic goal of providing innovative payment solutions foronline communities, including: • Revitalised Consumer Brand: At the beginning of January the Groupupdated its NETELLER Payment Network brand for consumers, at www.neteller.com.The bold new brand is designed to appeal directly to the Group's coredemographic, with an offer of a suite of lifestyle financial services for theonline generation. The update creates a new brand platform for the release ofnew consumer services throughout the year. • Stronger Consumer Offer: During the first half of the 2008 the Group willintroduce significant enhancements to its consumer services, including a newsuite of highly secure and convenient card products, a new rewards program, anda range of new payment options. • Enhanced Merchant Value Proposition: During the first quarter theGroup will be announcing details of a broad new suite of e-commerce applicationsfor both gaming and non-gaming merchants. The suite, based around the Group'sexisting core gateway and e-money wallet services, will help online merchantscreate stronger customer relationships than are possible with other paymentsolutions such as credit cards. The suite has already been deployed to a limitednumber of merchants, with a broader deployment planned for the first half. • Updated Merchant Branding: As the Group introduces its new paymentsuite it will also be revising its merchant facing brands. The first of thesewill be the Group's high velocity NetBanx payment gateway, in the first quarter. The Group anticipates it will make further announcements as these initiativesare rolled out during 2008. Ron Martin, President & CEO, commented "Considering the significant challengesthat our Company has faced during the past year, I am pleased with theperformance of the business in 2007 and I am excited about the prospects for2008. We have a number of key strategic initiatives which will be launched in2008, commencing this week with the rebranding of our consumer-facing site,www.neteller.com. These developments represent a step change in the productsand services we can offer our merchants and customers. I am confident about ourstrategy and that these initiatives will be reflected in our performance for2008." The Company's next update will be the announcement of its preliminary resultsfor the year ended 31 December 2007 on Tuesday, 11 March 2008. Enquiries: Andrew Gilchrist + 44 (0) 7824 385 829 VP Communications, NETELLER Plc Email: [email protected] Daniel Stewart & Co Plc + 44 (0) 207 776 6550 Paul Shackleton Citigate Dewe Rogerson + 44 (0) 207 638 9571 Sarah Gestetner / Seb Hoyle / George Cazenove Notes to Editors About the NETELLER Group Trusted by customers and merchants in over 160 countries to move and managebillions of dollars each year, the NETELLER Group operates the world's leadingindependent online payments business. The Group specialises 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 thousands of retailers and merchants in manygeographies and across multiple industries. 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 or contact us byemail at [email protected]. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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