Press Release

NETELLER Reports Strong Growth with Trading Figures for Quarter 1


NETELLER plc (“NETELLER” or the “Company”), the leading global online money transfer service, today announces its trading figures for the period 1 January 2004 to 31 March 2004, (“Quarter 1”). NETELLER, in accordance with the AIM rules will in due course produce Interim results for the six month period ending 30 June 2004.

Highlights:

Revenues

2004 – Q1

2003 – Q4

23% increase

$ 15.4 million

$ 12.5 million

  • This represents a 161% increase in revenue in Q1 2003, which was $ 5.9 million.

Gross Margin

2004 – Q1

2003 – Q4

69.5%

69.5%

  • The gross margin for Q1 2003 was 71.2%
  • Margin maintained despite the Company’s ramp up to facilitate the anticipated growth and the European and Asian expansion efforts. The Company believes that “Normalised” Gross Margins have improved dramatically.

EBITDA

2004 – Q1

2003 – Q4

35% increase

$ 9.3 million

$ 6.9 million

  • This represents a 138% increase in EBITDA against Q1 2003, which was $ 3.9 million.

Net Income

2004 – Q1

2003 – Q4

53% increase

1,634

1,068

  • Net Income includes certain non-reoccurring management and shareholder compensation schemes that were incorporated as part of being a private company and as such is not a true indication of the company’s performance.

Average Daily Sign

2004 – Q1

2003 – Q4

53% increase

1,634

1,068

  • Average daily signups were 715 in Q1 2003
  • Total members were 735,168 at end of Q1

Average Daily Deposits

2004 – Q1

2003 – Q4

27% increase

$ 1.4 million

$ 1.1 million

  • Deposits are up by 187% over Q1 2003 which was $ 500,191.

Other Events

  • European Expansion – the company launched its European platform on 17 February 2004 and is continuing to see strong growth in this market.

Commenting on today’s announcement, Gord Herman, CEO of NETELLER, said: “NETELLER continues to perform strongly, and has exceeded our growth aspirations in all categories. We are exploring a number of exciting opportunities to develop the Company’s global presence and our recent stock listing will help us achieve our goals.”

 

Unaudited

 

 

 

 

 

Actual

Actual

Actual

Actual

Actual

Calender

Q1 – 04

Q1 – 03

Q2 – 03

Q3 – 03

Q4 – 03

Yearend 03

Revenues

15,399,607

5,939,608

6,941,016

10,337,982

12,499,810

35,718,416

Direct Coss

4,702,086

1,705,916

2,395,367

3,826,110

3,819,027

11,746,420

General and Admin

1,393,368

324,727

670,589

1,047,329

1,789,318

3,831,963

EBITDA

9,304,153

3,908,965

3,875,060

5,464,543

6,891,465

20,140,033

Other Expenses*

1,605,358

4,071,614

4,036,438

4,958,531

4,811,299

17,877,882

Income taxes

1,347,289

(44,500)

(44,500)

31,678

81,456

24,134

Net Income*

6,351,506

(118,149)

(116,878)

474,334

1,998,710

2,238,017

 

 

 

 

 

 

 

Daily Sign ups

1,634

715

715

1,114

1,068

 

Total Members

735,168

320,030

385,796

488,252

586,477

 

Average Daily Deposit

1,434,897

500,191

585,406

960,221

1,142,282

 

 

 

 

 

 

 

 

* denotes amortization and on-reoccurring shareholder remuneration expenses

EPS is not applicable as the Company was a Private entity


About NEOVIA Financial Plc

Trusted by consumers and merchants in over 160 countries to move and manage billions of dollars each year, NEOVIA Financial Plc (formerly NETELLER 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.

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.

NEOVIA Financial Plc recently changed its corporate identify from NETELLER Plc to better reflect the strength and breadth of its individual product brands. At the same time its ticker symbol changed from NLR to NEO.

Media and Investor Contacts

NEOVIA's media relations are managed by McEntegart Marketing. Contact them through the Media Relations Contact page. NEOVIA investor relations are managed by Citigate Dewe Rogerson. Contact them through the Investor Relations Contact page.