10th May 2005 07:00
NETeller PLC10 May 2005 NETELLER PLC TRADING STATEMENT London, England - 10 May 2005 NETeller Plc (the "Company"), a leading online money transfer service providerand e-money issuer, reports that the first quarter of 2005 continued a verypositive trend in terms of growth, increased margins and profitability. Highlights Percentage changes shown vs. Q1 2004: • Signed up users: Over 1.5 million (up 105%)• Average daily receipts: US $2.9 million (up 100%)• Revenue: US $34.2 million (up 121%)• Profit before tax: US $18.2 million (up 136%)• EPS: US $0.14 per share (up 158%) (1) (1) Based on 119,800,000 current total shares outstanding. Operational and Financial Data All financial figures in US$ unless otherwise noted Sign ups March 2005 saw the Company surpass 1.5 million members and our highest averagedaily signup level of 2,862. Signups increased 38% from the previous quarterand 75% from Q1 2004. The Company closed the quarter with 1,508,659 members. Revenue Revenue for the quarter of $34.2 million was up 121% from 2004 and 24% comparedto the previous quarter. The increase was driven by higher transactionalvolumes plus improved efficiencies in obtaining revenue from funds in theNETeller system. Gross margin Gross margin improved to 73% in the first quarter of 2005. Bad debts fell as a% of sales to 13% from the historic 14% of sales resulting in an improved marginfor the quarter. The Company also obtained operating leverage off the increasedrevenue to reduce direct costs as a percentage of sales. Expenses General and administrative expense at $4.1 million in Q1 2005 is 12% of salescompared to 9% of sales in Q1 2004 and 15% in Q4 2004. The stable US$ in Q1 2005 reduced the foreign exchange movement in the quarterand thus a much lower foreign exchange charge. Net income before other expenses Net income before other expenses was $20.8 million which is an increase of over$5 million (38%) from Q4 2004 and 120% from Q1 2004. The Company has completed the transition to the Isle of Man and is recording aneffective global tax rate of approximately 10%. Earnings per share The overall business growth and operational efficiencies have improved theearnings per share to US $0.14 per share for the quarter based on the number ofshares outstanding for the period of 119,800,000. Quick Access Acquisition The acquisition of Quick Access resulted in a nominal increase in revenue anddid not impact the net income of the Company. The post-acquisition plan forQuick Access is proceeding as planned. Financial Summary Q1 2005 vs Q1 2005 vs Unaudited Unaudited Unaudited Q1 2004 Q4 2004 Q1 - 05 Q1 - 04 Q4 - 04 % change % change Revenue 34,193,554 15,491,453 27,591,548 121% 24% Cost of sales 9,331,053 4,702,086 8,371,069 98% 11%Gross profit 24,862,501 10,789,367 19,220,479 130% 29% General and Admin 4,058,738 1,334,329 4,141,282 204% -2%Income before other items 20,803,763 9,455,038 15,079,197 120% 38%Other expense (income) Foreign exchange loss (67,431) 150,885 (1,375,622) na na (gain) Management bonus 1,778,009 1,000,000 - 78% na Depreciation and amortisation 913,198 605,358 847,354 51% 8% 2,623,776 1,756,243 (528,268) 49% na Profit before tax 18,179,987 7,698,795 15,607,465 136% 16% Income tax expense 1,815,526 1,347,289 2,583,554 35% -30%Net profit 16,364,461 6,351,506 13,023,911 158% 26% Earnings per share $ 0.14 $ 0.05 $ 0.11 158% 26% Daily Sign ups 2,862 1,634 2,072 75% 38%Total Members 1,508,659 735,168 1,251,031 105% 21%Average Daily Receipts from 2,865,878 1,434,897 2,348,669 100% 22%membersGross margin as % of sales 73% 70% 70% Normal seasonality in the primary market that NETeller serves results in themost significant growth in the first and third quarters. Enquiries: NETeller Plc 01624 698 702Gord Herman, CEODale Johnson, Executive Vice PresidentEric Hughes, Chief Financial Officer Citigate Dewe Rogerson 0207 638 9571Sarah Gestetner/Seb Hoyle/George Cazenove Notes to Editors The NETeller Group The NETeller Group operates an online money transfer service that utilises andextends the existing international banking structure to provide a secure meansof transferring funds worldwide. A NETeller account acts as a virtual walletthat enables members (individuals who open NETeller accounts) to load, withdrawand transfer funds by purchasing e-money. E-money can be instantly transferredto or from any merchant (or internet site) that supports NETeller's onlinepayments system for goods and services. Additionally, funds can be transferredbetween members in peer-to-peer exchanges. NETeller has over 1.5 millionmembers and approximately 1,400 supporting merchants, making the Company aleader in online payment services. NETeller UK Limited is authorized by theFinancial Services Authority (FSA) to operate as a regulated e-money issuer.Further information may be obtained from the NETeller's website atwww.neteller.com. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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