||EPS - Basic
||Market Cap (m)
Real-Time news about Fireone (London Stock Exchange): 0 recent articles
|britishbear: I suspect this is related to FPA's ownership structure and physical location.
Question is whether this means NLR will follow suit?
What is interesting is that the drop has been so small. I would have expected at 50% fall in the share price.
This means that most gaming companies appear to have a total US pull out pretty much in the price.
This matches the NLR NUMIS price of over £2 WITHOUT THE US making it a buy at current levels even without the US.
|woodcutter: This an extract from the last qtr accounts note the part i have highlighted """"" i guess you could say we were warned.
In addition, since the Group derives its revenue from processing transactions
for Internet gaming, the Group may be exposed to governmental investigations
or lawsuits initiated by the public in jurisdictions where Internet gaming is
restricted or prohibited. In the event that the United States government decides
to enact legislation making the funding of online gaming activities by U.S.
residents unlawful, or that any adverse rulings are rendered in any such
investigations or lawsuits directed at the Group or at its customers or
suppliers, it may have a significant negative impact on the operation of our
"""""Future regulation or any such investigations or lawsuits may make it
costly or impossible for us to continue processing transactions for many gaming
While best estimates have been used for reporting financial statement
items subject to measurement uncertainty, management considers that it is
possible, based on existing knowledge, that changes in future conditions in the
near term could require a material reduction in the recognised amounts of
certain assets. 'Near term' is considered to be within one year from the date of
the financial statements.
looking at the share price it currently equates to a little less than the cash and other liquid assets @ $47.5m.
With $28.7m costs for 6 mths there needs to be some serious cut backs and positive news flow regarding this legislation or the share price will be less than 25p in 6 mths
Is there still a business??|
|jojaken: FOr those who missed the Independent article on Tuesday:
Our view: Buy
Share price: 233p (+25.5p)
The fortunes of FireOne, the online payment processing firm, are closely bound up with the internet gaming industry, which has been on a rollercoaster this year. FireOne has been described as the "lifeblood of the industry" and its valuation - incredibly cheap at 4.9 times 2006 earnings - reflects the mounting risks faced by online gaming firms in the US, the world's most lucrative market. The recent arrest of the BetonSports chief executive David Carruthers in the US and his indictment along with 10 others has sent shockwaves through the sector. Also, a bill has been making its way through the US Congress that would outlaw all forms of internet gambling and make it illegal for banks, credit card companies and the likes of FireOne to process payments to internet gaming operators.
However, it is unlikely that the bill will become law as there are only 15 working days left before congressional elections in November. Meanwhile, FireOne is steaming ahead. It posted a 98 per cent rise in half-year profits yesterday and was upbeat about the rest of the year. The dividend came in ahead of expectations and there will be a further return of cash to shareholders.
Come October, when the uncertainty surrounding the anti-gambling legislation clears, the shares should take off.|
|woodcutter: Why the big fall?
If first quarter earnings are anything to go by then at roughly 16c/1.84 we are looking at 8.6p for the quarter. Assuming this is repeated over the year with no growth thats over 32p, which means these are on a per of about 7.5, that's ridiculously cheap. Only question is can they deliver similar figures over the rest of the year?
I also feel the regulation issues are overdone and the gaming business is too big to legislate against. Woracles point on credit cards is the biggest worry but my feelings are exisitng customers will most likely stick with their e wallet, getting new customers may be a drawback.
In addition the exchange rate is quite strong in favour of the pound at present and as we know this goes in cycles so that's another good reason to buy as it's not likely to get much stronger (based on history) and more likely to get weaker over time, thereby improving the earn/share and dropping the per.
I still hold and am sitting on a loss and most likely will wait for the next quarter results and if they show similar earnings will almost certainly increase my stake.
If it goes much lower it could even be a target for takeover. There's clearly some consolidation in this sector with Datacash having been targeted, so it's not out of the question. I guess much depends on how Optima, who own about 76% of the shares, view things. You can the optima share price on the advfn us stock list.
Anyone been buying today on this drop?
When is the next hearing/decision likely on the us legislation?
|evilwebby: KANWAR, I'm not dumping. FPA is far too cheap. Only hold about £1k's worth, so if they get cheaper, I'll probably buy some more. A bit of good news (like new ceo) and this will fly. Current growth rate puts us on a p/e of 5 for this time next year if share price doesn't do anything. Can't see that - £6 this year, £10 sometime in 2007 are my targets.|
|andyh69: Just found this Motley Fool piece reproduced over on Yahoo
Tuesday November 8, 12:15 PM
A Safer Online Gamble
By Ed Bowsher
Neteller (LSE: NLR.L - news) (LSE: NLR) has been an excellent stock market performer since it floated in April last year. An astute or lucky trader could have made a 300% profit from the share in 18 months. Rival FireOne (LSE: FPA) has also done well since it listed in June.
The strong share price performance of both companies is no surprise once you realise that their businesses are closely linked to the online gambling boom. Both companies provide "e-wallets" to Internet gamblers and fans of the industry reckon the likes of Neteller make less risky investments than companies such as PartyGaming (LSE: PRTY), which operate internet poker sites.
So what are e-wallets?
e-wallets allow gamblers to transfer funds to internet gaming companies without difficulty. Internet gambling is illegal in the US, so credit card companies cannot pay money directly to PartyGaming and its competitors. Instead the credit card companies transfer cash to the e-wallet company, who then pass it on to the internet gambling operators.
Supporters of Neteller argue that we don't know which gambling sites will dominate in five years' time, but we know that e-wallet companies will provide services to whichever gambling sites prove to be the most popular. Hence, Neteller and FireOne are arguably lower risk investments.
Neteller justified the faith of its supporters yesterday with excellent third-quarter figures. Revenue more than doubled to $45m compared to a year earlier, while pre-tax profits soared from $13m to $26m. That means Neteller has a fantastic 58% pre-tax margin.
FireOne followed Neteller by announcing decent third-quarter numbers today. Its pre-tax margin is lower, but the company still reported a 90% rise in revenue to $20m, while pre-tax profit climbed from $4m to nearly $6m.
On the basis of those figures -- especially the margin -- Neteller certainly looks very interesting. Sadly, at least some of the good news is already in the price. Shares in Neteller are trading at 681p this morning, which puts the company on a price to earnings (P/E) ratio of 17.
I don't have any analyst forecasts for FireOne, but if one assumes that third-quarter earnings of 6 US cents are repeated across the year, Fireone is trading on a current P/E ratio of 27.
Both ratios look a bit steep given the risk that US gambling laws may change. If Internet gambling is legalised in the US, gamblers may not bother with e-wallets anymore and just pay with their credit cards.
What's more, a 56% margin may well attract more competition into the sector. On the other hand, Neteller hopes to diversify away from the US gambling business by becoming an internet bank.
Neteller looks the more interesting of the two London-listed e-wallet players, but I would want to do more digging before I paid 681p for shares. Notably, two of Neteller's founders have decided it's time to lock in some of their profits. Chairman Stephen Lawrence and fellow director John Lefebvre sold shares worth £218m yesterday -- reducing their holding from 49% to 20%.
|liquidkid: Initiating dividend in 2006 - all earnings that are in excess of amounts required. Highlights the cash cow status of this stock. Potential here for a good yield at a around a minimum of 5.8% at current price.
Revenue growth rate runnng the same this quarter as NLR at 14% QonQ. I can't see why not the share price should be adjusted towards a likewise level.|
|silverthread: Following on AFX 17.26 today. looks like SBT doesn't agree with the market sentiments expressed by PRTY.
RPT Sportingbet says trading in line with its expectations - UPDATE
(Repeating to clarify timing of fiscal year end)
LONDON (AFX) - Sportingbet PLC said it had traded in line with its own expectations since the start of its fiscal year as the online betting and gaming group attempted to reassure investors in the wake of an earlier profit warning from rival PartyGaming PLC.
The announcement followed an earlier slump in Sportingbet's share price after its bigger rival warned it had been hit by a sharp slowdown in customer growth in recent weeks.
Sportingbet shares closed 60 pence, or 16 pct, down on the day at 311, off an earlier low of 305 pence, valuing the company at around 1.1 bln stg.
Sportingbet last year bought Paradise Poker for around 196 mln stg, a deal which catapulted it into third position in terms of the world's largest online gaming groups, with an 8 pct share of the global online poker market.
Sportingbet went on to say talks with Empire Online Ltd, first revealed yesterday, were at 'a very preliminary stage'.
Sportingbet's fiscal year ended on July 31.
|m.t.glass: - Fireone reference within:
Tip Update: banks beware, Neteller is hungry for your lunch
Published: 12:48 Friday 02 September 2005
By Joanne Wallen, Associate Editor - Citywire
Citywire tip Neteller has sky-rocketed in the past year but it has pretensions to become a global online bank and the likes of Barclays and Western Union ought to watch out.
Shares in the online money transfer business leapt a further 14p today to 880p, pushing Neteller's valuation over £1 billion. The company floated just last year at 150p, and Citywire tipped the shares in February at 562p after spotting several highly-rated fund managers piling in.
The company's flotation was discounted to counter fears over its reliance on the online gaming industry, and therefore concerns about a potential tightening of anti-gambling legislation in the US.
However the massive hike in the share price since then reflects both the very high margins and stellar growth enjoyed by the business, and, just as importantly, the staggering potential that it has to overtake some of the world's longest established banks.
Turnover for the six months to June grew by 122% to $73.5 million (£40 million), with pre-tax profits up 122% at a hefty $40.6 million. Earnings per share were $0.31.
Chief executive Gord Herman told Citywire that this performance was achieved in spite of the second quarter being traditionally the weakest. And as if gross margins of 59% were not enviable enough, the company managed to push margins as high as 73.5% in the half by improving efficiency in customer service and decreasing bad debt.
The Neteller service basically allows the user to sign up, deposit money from their bank account into a Neteller account, transfer money to make payments for purchases or online gaming and withdraw money.
Herman describes the procedure as 'very invasive', but rather than being a negative, this is a major plus point for the system. Customers are virtually asked everything but their shoe size before being given a secure id and password, and most of the information they provide (address, bank details etc) is authenticated as they go.
In this way, Neteller is as sure as it is possible to be that you are who you say you are, and because of this it indemnifies all of its merchants, guaranteeing that they will get their money.
What is particularly ingenious about Neteller's global ambitions is that instead of simply setting out to build a global online bank in the way that say ING is doing, it has piggybacked off an industry, online gaming, whose users are so driven to gamble online that they have no qualms about going through an invasive, 20-minute sign-up procedure. On top of this, the company is being paid royally for building its global infrastructure, moving into new territories only when a gaming customer requires it to do so.
Herman reckons that for every dollar deposited with Neteller, the company makes 13 cents. It charges the merchant between 2.5% and 5% per transaction, (the average is currently 3%) which compares with the 3.5% to 6% they pay per credit card transaction, where the money is not indemnified (customers can claim that was not their $1,000 bet and have the money stopped, which they cannot do with Neteller).
Given that 48% of people win, they will transfer their money back to Neteller and start again. In addition, clearing money from a bank account into Neteller normally takes two to four days, but is free to the customer. However if they want instant money transfer, they are charged 8.9%. Herman said it is amazing how many people are prepared to pay for this service, particularly when they want to play online poker or make an instant sports bet.
To date, some 80% of revenues come from online gaming. The company also has a growing business from online auction sites such as eBay.
But it is adding 'sign-ups' or customers at an incredible average daily rate of 2,732, up 82% on last year. Total customers now top 1.75 million, and the company has only been in existence for three years. By contrast, Barclays has just 5 million online customers and this figure is not growing.
Neteller has also added some 300 merchants since December, taking the total to 1,700. During the period it added two major merchants, Betfair, the global betting exchange, and Expekt.com.
Add to this the profile of Neteller's customers. The average age is 32, average salary $60,000, with 20% earning more than $100,000 and 18% post graduates. To round off its 'banking' service, Neteller gives customers a visa or Mastercard debit card, which they can use to withdraw their funds at ATMs or spend money in shops.
Look out not only Barclays, but Western Union and the like as well. Using a Neteller account and a Neteller debit card, people can transfer funds to each other online, anywhere in the world.
And if you are not yet convinced that the shape of banking is changing, Herman points out that US giant General Electric (GE), is not only now the fifth largest bank in the US, but it has recently signed a deal with eBay's Paypal business. Ebay is now one of the world's largest car sellers, and anyone buying a car through the website will now be offered financing by GE.
Neteller has already been authorised by the Financial Services Authority in the UK as an 'e-money' transfer provider, but it has far bigger ambitions. It is now looking either to partner a large bank, buy a smaller bank or get its own banking licence, or possibly a combination of these.
There are competitors out there, but few if any seem to have made the impact that Neteller has. Herman said Royal Bank of Scotland is going to be 'very aggressive' in the area, but 'Barclays doesn't know what to do'.
Recently floated rival Fireone has been around longer than Neteller. In Neteller's first year, 2002, it had revenues of $1 million while Fireone made $47 million. By last year, Neteller was up to $83 million and Fireone turned over just $43 million.
This really does look like dotcom boom all over again, only this time with substance rather than hype.
Neteller not only has stellar revenue and profit growth with the sort of margins most of the world's businesses would give their right arm for, but it also looks like it is about to do what everyone feared the dotcomers would do a few years ago, sneak up on traditional businesses and eat their lunch.
Traditional players may have been lulled into a false sense of security with the dotcom crash, but this is no time for complacency, and the world's banking industry should sit up and take note of Neteller.|
|paullove: From today's Independent :-
Time is right to step on the internet gambling bandwagon with FireOne
"Enough already? A company only has to mention internet gambling to send its shares soaring, the equivalent of appending ".com" to their name five years ago. But, while investors must be wary, this is not a market mania in the same vein. Because companies are making money out of internet gambling. Lots of it.
FireOne's shares have doubled since it floated at 241p nine weeks ago. It shuffles money from gamblers to gaming sites, getting a tenth of its profit from traditional credit card processing, and the rest from its "e-wallet", where gamblers put in cash and online sites take it out. Since online gambling is, technically, illegal in the US, this is a vital service, and FireOne is No 2 to NETeller.
It was carved out of a bigger Canadian payments group, Optimal. Sceptical investors ask: if Optimal thinks this is a business with enormous potential, why sell 20 per cent of it? FireOne says: if they don't, why sell only 20 per cent? The large margins FireOne can command will come down - eventually. The growth in online poker will slow down - eventually. Not yet.
Maiden interim results showed pre-tax profits more than doubled, and FireOne's broker, Numis, thinks it will double again next year. The difference between now and nine weeks ago is that Numis must be right to justify the 486p share price. With growth from the roll-out of broadband and from mobile gaming, we think it will. Speculative buy."
Fireone share price data is direct from the London Stock Exchange