Solid 2007 performance underpins platform for growth in 2008
Tuesday, 11 March 2008 – NETELLER Plc (LSE: NLR), the independent global online payments business, announces its audited preliminary results for the year ended 31 December 2007.
Financial Highlights
- Total revenue for 2007 was USD$ 84 million; revenue of USD$ 69 million from operations outside of North America represented an increase of 15% from 2006.
- European revenue grew 28% to USD$ 41.7 million in 2007; Asia Pacific grew 44% to USD$ 11.4 million.
- Gross margin in 2007 was 56%, compared to 70% in 2006 and 55% in H1 2007.
- Loss before tax of USD$ 185.7 million after US settlement of USD$ 136 million and related costs and restructuring expenses of USD$ 37 million.
- Cash flow from operations positive during H2 2007.
- Solid balance sheet at 31 December 2007 with USD$ 80.8 million cash and cash equivalents.
Key Performance Indicators
- Active e-wallet users (ex North America) totalled 99,984 in Q4 2007, up 9% from Q4 2006.
- Fee revenue per active e-wallet user was USD$ 124 in 2007, an increase of 8% from USD$ 115 in 2006.
- Average daily sign ups were 1,191 for 2007, with 1,076 sign ups per day in Q4 2007.
Operational Highlights
- Stabilised business and refocused merchant and consumer business divisions to support our vision – to provide bold payment solutions for e-commerce communities that power the efficient global movement of money.
- Revised the e-wallet look and feel to better connect with target demographic – the first step in an overall Group-wide rebranding strategy.
- Payment product suite aimed at driving merchant value proposition and extending consumer offering.
Current Trading
- Trading during the first two months of 2008 showed continued growth from 2007.
- Final payment of USD$ 38.25 million made to US authorities on 16 January 2008.
- Sold Calgary property as announced in February 2008 - USD$ 33 million net proceeds receivable on 31 March 2008.
- Announcement today of Centricom Europe joint venture to distribute POLi online bank payment platform in Europe and UK launch of POLi payment service through NETBANX.
Ron Martin, President & Chief Executive Officer, said “2007 represented a milestone for the Group as we successfully resolved our issues with the US authorities, and energetically refocused the business to put into action our updated vision and mission. The renewal of the Group’s businesses to leverage changed market opportunities has created energy and enthusiasm throughout the organisation. I am confident this will be reflected in our performance in 2008. I would like to thank all our employees for their contributions during a very challenging period in 2007 and I look forward to greater progress into 2008 and beyond.”
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