NEOVIA CEO Leaves Company Citing Family Reasons

In recent news announced to the London Stock Exchange, the Chief Executive Officer (CEO) of NEOVIA Financial, the parent company of Neteller, has left his post. The news of the departure of NEOVIA President and CEO Ron Martin was revealed in a Trading Update last week to the Exchange, where it can be found under the symbol “NEO.”

The update revealed that Martin is leaving the company for “family reasons.” He has been in executive roles for the past four years at the publicly traded company. The statement explained that Martin “has agreed to remain with the Company during a transition period to facilitate the orderly engagement of a replacement CEO. A recruitment process is being commenced. The Board expresses its gratitude to Mr. Martin for his effective leadership during a challenging time for the Company and appreciates his continuing support during the transition interval.” No speculation was given as to a possible successor.

At the time of writing, shares of NEO were fetching ₤35.50. During the fourth quarter of 2008, NEOVIA expected revenues of $21.3 million, which would mark a 31% increase over the same period in 2007. “Fee interest” rose a whopping 41% during the same period year over year to $19.8 million. The positive numbers came despite a struggling worldwide economy. Interest income, meanwhile, is expected to drop 38% year over year to $1.5 million during the fourth quarter of 2008.

With regards to its performance during 2008, the NEOVIA Trading Update revealed, “The Board expects that the Group will report operating profit, before any impairment losses or restructuring costs, for the full year 2008 in line with market expectations.” The company launched Net+ pre-paid MasterCards during the second half of the year and continued to expand its brand globally. Until 2008, the parent company was named Neteller. However, shareholders approved the name change to NEOVIA in October; the Neteller e-wallet remains as one of its business units.

Like many other companies worldwide, NEOVIA is searching for ways to reduce costs. The publicly traded firm plans to remain slim “through additional restructuring and geographical optimization of cost centers.” It is in the process of trying to purchase IDT Financial Services Holdings Limited, a sale that is still in limbo pending formal approval by the Gibraltar Financial Services Commission. The company did not provide a timeline as to when it will finalize its acquisition.

Last May, shares of NEOVIA had climbed as high as nearly ₤70. By the end of October as stock markets crashed across the globe, its share price fell below ₤50. Audited results from the company are expected next month. Its core products include NETBANX, NETELLER, and Net+. NETBANX allows websites to accept payments online with ease from customers using credit cards, Direct Debit, giropay, and POLi.

NETELLER is still available for many online poker players to deposit if they are located outside of the United States. The company exited the U.S. market soon after the passage of the Unlawful Internet Gambling Enforcement Act (UIGEA) in 2006, which resulted in accounts being frozen until a settlement was reached in 2007. Neteller founders Stephen Lawrence and John Lefebvre were arrested, according to court documents, for running “an internet payment services company that facilitated the transfer of billions of dollars of illegal gambling proceeds from United States citizens to the owners of various internet gambling companies located overseas.” Neteller began accepting online wagers from U.S. residents in 2000. Lawrence was picked up in the Virgin Islands (a U.S. territory) and Lefebvre was arrested in California. Both officially held Canadian citizenships.

Other e-wallets accepted by online poker rooms include Click2Pay, ClickandBuy, and Moneybookers. On PokerStars, none of these options are available to players from the United States. Party Gaming (PRTY), 888 (888), Ladbrokes (LAD), and Sportingbet (SBT) are also traded in London.