Global payments processor NEOVIA Financial PLC reported a 9% fall in revenue for the half-year ending on June 30th, 2009. The company, which owns the popular e-wallet Neteller, posted group revenue of $32.6 million, down from $35.9 million at the same time last year. Net loss for the first-half was $6.7 million, or $0.06 per diluted share, compared to net profit of $1.15 million, or $0.01 per share, a year ago. The company is traded on the London Stock Exchange under the symbol NEO.
“The first half’s trading results were in line with management’s expectations given the continuing difficult market conditions that prevailed throughout the period,” said Dale Johnson, Chairman of NEOVIA. “We expect trading conditions to remain tough in the second half, with the Company delivering revenue similar to the first half, with prospects for 2010 looking promising.”
NEOVIA’s focus for improvement is centered on adding more consumer and merchant scale to its business and rolling out a new e-wallet business platform called NewTeller, which is scheduled for completion next year.
“The NewTeller platform will launch fully in early 2010 as anticipated, creating much needed flexibility for developing functionality to meet evolving market needs,” Johnson added. “During this period, the Group faces both challenges and opportunities, but remains focused on maximizing revenues, controlling costs, and preserving cash to deliver value for shareholders.”
On a positive note, revenues from the NETBANX Europe and Asia businesses performed better in 2009, up 12% compared to the same period in 2008. Revenues from the Asian business alone grew 40% to $6.9 million. Active e-wallet users were up 3% to 95,492 by June 30th. Average daily deposit volume was up 20% to $475,266 from last year’s mark of $396,413.
NEOVIA CEO Mark Mayhew, who took over the position on September 1st, isn’t worried by the decrease in revenue. “I am very pleased to have joined NEOVIA and am reassured by these results, which demonstrate the resilience of the Company’s business model even in the toughest of economic environments,” said Mayhew. “I shall be concentrating on creating substantial shareholder wealth in the future and the board is fully supportive of this aim. Over the next few months, one of my prime objectives is to focus the Group’s efforts on re-energizing our offering in order to grow revenues demonstrably.”
NEOVIA also announced completion of the investigation by the United States Department of Justice and the handing over of a copy of the Notice of Dismissal of the complaint filed against Neteller. The company received notice that it no longer faced the possibility of legal prosecution after the expiration of its Deferred Prosecution Agreement from the U.S. Attorney’s Office. In such an agreement, proceedings in a criminal case are put off for a period of time, subject to certain conditions. At the end of the time period, if all conditions have been met, the charges are dismissed. Neteller was forced to surrender $136 million in July of 2007 after admitting to operating an “unlicensed money transmitting business” and participating in the promotion of “unlawful transactions” between gaming operators and their customers in the United States.
