Press Release

NETELLER Interim Results Show Good Growth in H1 2007


Thursday, 23 August 2007 – NETELLER Plc (LSE: NLR), the independent global online payments business, announces its interim results for the six months ended 30 June 2007.

Operational Highlights

  • Stabilised business following US resolution to provide solid foundation for future growth
  • Active customers (ex North America) up 29% to 97,216 in Q2 2007 from 75,381 (Q2 2006)
  • Completed restructuring to align costs with anticipated revenues
  • Continued globalisation programme to yield revenue growth in Europe and Asia Pacific
  • Delivered first phase of strategy to solidify position as pre-eminent provider serving online gaming sector in selected markets
  • Management team committed to driving strategy for NETELLER

Financial Highlights

  • Revenue in H1 2007 was US$ 50.8 million, a decrease of 57% from H1 2006 due to withdrawal from US market
  • European revenue in H1 2007 grew 46% to US$ 21.2 million; Asia Pacific grew 46% to US$ 5.4 million
  • Gross margin in H1 2007 was 55%, compared to 72% in H1 2006
  • Loss before tax in H1 2007 was US$ 24.7 million due to US restructuring and legal related expenses
  • Cash at 30 June 2007 was US$ 210.5 million; before US$ 136 million due to US authorities
  • Cash flow from operations neutral in H1 2007.

Ron Martin, President & Chief Executive Officer of NETELLER, said “These results have been produced during a very challenging period for the NETELLER Group and they represent the first stage of rebuilding the business into a platform for growth within the European and Asia Pacific markets. The resolution of our US situation announced in July 2007 allows us to start implementing our strategy to develop further innovative payment solutions for our customers and merchants within our selected markets. We will initially focus on our core market of online gaming where we have developed considerable expertise. In the medium term, however, we will look to add further offerings for our customers that add value to the e-wallet proposition such as payment cards and other payment features. We believe online payments is a rapidly growing market and NETELLER is well positioned to benefit from this. The Board looks forward to the next six months and beyond with confidence about the Group’s prospects.”


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.

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