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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Neo Energy Metals Plc | LSE:NEO | London | Ordinary Share | GB00BYWLRL80 | ORD GBP0.0001 |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.375 | 0.35 | 0.40 | 0.375 | 0.375 | 0.375 | 133,073 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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RNS Number : 4255R
Neovia Financial PLC
30 April 2009
NEOVIA Financial Plc
First Quarter Trading Update
Thursday, 30 April 2009 - NEOVIA Financial Plc (LSE: NEO) ("NEOVIA" or the
"Group"), the independent global online payments business, announces its trading
update for the first quarter ended 31 March 2009.
First Quarter Highlights
* Group revenue of $16.4m down 3% compared to Q1 2008 of $17.0m;
* E-wallet revenue flat at $11.4m but overall fee revenue, including gateway
businesses, up 3% from Q1 2008 to $15.8m;
* Average daily receipts down 4% from Q4 2008 and 11% from Q1 2008;
* Active e-wallet users down 5% at 92,757 compared to Q4 2008 (excluding North
America);
* E-wallet revenue per active e-wallet user $122 for Q1 2009, an 8% increase on Q1
2008;
* Gross margin at 58% compared to 62% and 64% for Q1 2008 and Q4 2008
respectively;
* Income from operations up 29% to $3.1m compared to $2.4m in Q1 2008;
* Total Group cash was $76.5m at 31 March 2009;
* Board committed to Group's strategic vision and objectives to deliver
shareholder value.
Dale Johnson, Chairman, commented: "Trading in the first three months of 2009 is
disappointing and reflects a weakening trend in Europe due to an increasingly
competitive market, challenging economic conditions, volatile current markets
and limitations in new product introductions until Newteller (the Company's new
technology platform) is launched in Q3 2009. The future benefits of Newteller
will include cost savings and greater operating efficiencies within the Group.
We expect 2009 to be a year of both significant challenge and exciting
opportunity. Investment in the business will continue, especially for completion
of the Newteller programme. Strategic opportunities are being examined,
particularly in support of the Group's card strategy. The work to create
greater differentiation, accompanied by a cost structure that creates
competitive advantage, will be accelerated. While the Board remains confident
about the Group's prospects, the overarching themes for 2009 will be leveraging
high potential initiatives, cost control and prudent cash management."
For further information contact:
+------------------------------+------------------------------------+--------------------+
| NEOVIA Financial Plc | Email:investorrelations@neovia.com | + 44 (0) 207 638 |
| | | 9571 |
| | | (30 April) |
+------------------------------+------------------------------------+--------------------+
| Dale Johnson | Chairman | |
+------------------------------+------------------------------------+--------------------+
| Ron Martin | President & CEO | |
+------------------------------+------------------------------------+--------------------+
| Doug Terry | CFO | |
+------------------------------+------------------------------------+--------------------+
| Andrew Gilchrist | VP Communications | + 44 (0) 1624 698 |
| | | 713 |
+------------------------------+------------------------------------+--------------------+
| | | |
+------------------------------+------------------------------------+--------------------+
| Citigate Dewe Rogerson | | + 44 (0) 207 638 |
| | | 9571 |
+------------------------------+------------------------------------+--------------------+
| Sarah Gestetner / George | | |
| Cazenove | | |
+------------------------------+------------------------------------+--------------------+
| | | |
+------------------------------+------------------------------------+--------------------+
| Daniel Stewart & Co Plc | | + 44 (0) 207 776 |
| | | 6550 |
+------------------------------+------------------------------------+--------------------+
| Paul Shackleton | |
+------------------------------+------------------------------------+--------------------+
NEOVIA also released its 2008 full year results today and a conference call for
institutional investors will be held later today at 2.00 p.m. BST. Full details
are available on the Group's website at www.neovia.com.
* * * * *
Key performance indicators
The first quarter saw weakness in the Group's principal KPIs, with active
e-wallet users decreasing by 8% compared to the same quarter in 2008 (excluding
North American active e-wallet users), and also decreasing by 5% quarter on
quarter.Average daily receipts from e-wallet users were $396,413, which
represented a decrease of 11% compared to Q1 2008, and a decrease of 4% from Q4
2008. Total receipts from e-wallet users during Q1 2009 totalled $35.7 million
compared to $40.5 million in Q1 2008, and $38.0 million in Q4 2008. The Group
now tracks customer receipts (with restated prior period comparisons) to include
Canada (non-gambling) and 1 Pay (Asia e-wallet), which has successfully grown to
become a significant contributor of e-wallet receipts and associated fees.
The table below sets out the Group's active e-wallet users by region, excluding
those from North America:
+--------------------+-----------+-----------+-----------+-----------+-----------+
| Active e-wallet | Q1 2009 | Q1 2008 | % change | Q4 2008 | % change |
| users | | | Q1 2009 | | Q1 2009 |
| | | | vs Q1 | | vs Q4 |
| | | | 2008 | | 2008 |
+--------------------+-----------+-----------+-----------+-----------+-----------+
| Europe | 73,418 | 81,552 | -10% | 77,916 | -6% |
+--------------------+-----------+-----------+-----------+-----------+-----------+
| Asia Pacific | 13,097 | 14,984 | -13% | 13,794 | -5% |
+--------------------+-----------+-----------+-----------+-----------+-----------+
| Rest of World | 6,242 | 4,765 | 31% | 5,963 | 5% |
+--------------------+-----------+-----------+-----------+-----------+-----------+
| Total | 92,757 | 101,301 | -8% | 97,673 | -5% |
+--------------------+-----------+-----------+-----------+-----------+-----------+
| | | | | | |
+--------------------+-----------+-----------+-----------+-----------+-----------+
| Total signed up | 1,442,815 | 1,097,456 | 31% | 1,358,718 | 6% |
| e-wallet users | | | | | |
+--------------------+-----------+-----------+-----------+-----------+-----------+
The table below shows by region the Group's e-wallet revenue per active e-wallet
user based on the average quarterly fee revenue per user for the relevant
quarters in 2009 and 2008:
+--------------------+-----------+-----------+-----------+-----------+-----------+
| E-wallet revenue | Q1 2009 | Q1 2008 | % change | Q4 2008 | % change |
| per active | | | Q1 2009 | | Q1 2009 |
| e-wallet | | | vs Q1 | | vs Q4 |
| user ($) | | | 2008 | | 2008 |
+--------------------+-----------+-----------+-----------+-----------+-----------+
| Europe | 123 | 117 | 5% | 138 | -11% |
+--------------------+-----------+-----------+-----------+-----------+-----------+
| Asia Pacific | 133 | 102 | 30% | 137 | -3% |
+--------------------+-----------+-----------+-----------+-----------+-----------+
| Rest of World | 89 | 81 | 10% | 97 | -8% |
+--------------------+-----------+-----------+-----------+-----------+-----------+
| Total | 122 | 113 | 8% | 135 | -10% |
+--------------------+-----------+-----------+-----------+-----------+-----------+
Average daily sign ups improved quarter on quarter by 10%, with 1,023 average
daily sign ups in Q1 2009 (excluding North America). This included growth of 8%
from Europe. Total average daily sign ups in Q1 2009 (including North American
sign ups from Canadian e-wallet users) were 1,040 compared to 946 in Q4 2008.
The table below shows the Group's sign ups by region (excluding North America):
+--------------------+-----------+-----------+-----------+-----------+-----------+
| Average daily sign | Q1 2009 | Q1 2008 | % change | Q4 2008 | % change |
| ups | | | Q1 2009 | | Q1 2009 |
| | | | vs Q1 | | vs Q4 |
| | | | 2008 | | 2008 |
+--------------------+-----------+-----------+-----------+-----------+-----------+
| Europe | 721 | 819 | -12% | 669 | 8% |
+--------------------+-----------+-----------+-----------+-----------+-----------+
| Asia Pacific | 148 | 176 | -16% | 129 | 15% |
+--------------------+-----------+-----------+-----------+-----------+-----------+
| Rest of World | 154 | 106 | 45% | 130 | 18% |
+--------------------+-----------+-----------+-----------+-----------+-----------+
| Total | 1,023 | 1,101 | -7% | 928 | 10% |
+--------------------+-----------+-----------+-----------+-----------+-----------+
The number of consumers who have e-wallets totalled 4,403,645 at the end of Q1
2009, including registered e-wallet users from North America.
Financial highlights
Revenue
Revenue for Q1 2009 of $16.4 million represented a decrease of 3% from $17.0
million for Q1 2008 primarily due to a significant decrease in interest revenue
due to sharply lower interest rates. Challenging economic conditions, an
increasingly competitive market and limited product enhancements also adversely
impacted revenue during the quarter.
E-wallet revenue, which comprises merchant and consumer fees generated from the
use of the e-wallet, excluding fees from the Group's NETBANX gateway businesses,
totalled $11.4 million in Q1 2009, flat compared to Q1 2008, but a decrease of
22% from Q4 2008. Fee revenue as a whole (including revenue from the Group's
gateway businesses) rose 3% from Q1 2008 to $15.8 million in Q1 2009, a
creditable performance given the challenging markets the Group currently faces.
+-----------------------+-----------+--+--------+-----------+--+---------+-----------+
| Revenue | Q1 2009 | | Q1 | % change | | Q4 2008 | % change |
| ($ millions) | | | 2008 | Q1 2009 | | | |
| | | | | vs Q1 | | | Q1 2009 |
| | | | | 2008 (2) | | | vs Q4 |
| | | | | | | | 2008 (2) |
+-----------------------+-----------+--+--------+-----------+--+---------+-----------+
| Europe | 9.0 | | 9.5 | -5% | | 11.6 | -22% |
+-----------------------+-----------+--+--------+-----------+--+---------+-----------+
| Asia Pacific | 1.7 | | 1.5 | 13% | | 2.1 | -19% |
+-----------------------+-----------+--+--------+-----------+--+---------+-----------+
| Rest of World (1) | 0.6 | | 0.4 | 51% | | 1.0 | -33% |
+-----------------------+-----------+--+--------+-----------+--+---------+-----------+
| Total e-wallet | 11.4 | | 11.4 | 0% | | 14.7 | -22% |
| revenue | | | | | | | |
+-----------------------+-----------+--+--------+-----------+--+---------+-----------+
| NETBANX | 1.1 | | 1.8 | -39% | | 1.2 | -8% |
+-----------------------+-----------+--+--------+-----------+--+---------+-----------+
| NETBANX Asia | 3.4 | | 2.1 | 57% | | 3.6 | -8% |
+-----------------------+-----------+--+--------+-----------+--+---------+-----------+
| Total fee revenue | 15.8 | | 15.3 | 3% | | 19.5 | -19% |
+-----------------------+-----------+--+--------+-----------+--+---------+-----------+
| Interest | 0.6 | | 1.7 | -65% | | 1.5 | -60% |
+-----------------------+-----------+--+--------+-----------+--+---------+-----------+
| Total | 16.4 | | 17.0 | -4% | | 21.0 | -22% |
+-----------------------+-----------+--+--------+-----------+--+---------+-----------+
(1) Rest of World e-wallet revenue in Q1 2009 includes $80,000 (Q4 2008:
$340,000) earned from the Group's Canadian e-wallet customers for non online
gambling related transactions.
(2) Percentage changes are based on revenue figures to two decimal places
Interest revenue continues to decrease through both the impact of lower balances
held by the Group generally and also the reduction in interest rates,
particularly for funds held in US dollars.
Gross margin
Gross margin for Q1 2009 was 58.0% compared to 62.2% in Q1 2008 and 63.9%
reported for Q4 2008. Customer support costs continued to represent a large
proportion of direct costs at 12.9% (Q1 2008: 15.2%) of revenue, compared to
10.1% in Q4 2008. Website maintenance costs are in line at 5.5% of revenues (Q1
2008: 5.6%). Deposit and withdrawal fees have increased to 21.9% of revenues in
Q1 2009 (Q1 2008: 16.7%) and up from 19.7% in Q4 2008, as third party card
programme related costs and merchant and customer payment processing fees remain
high. Bad debts were approximately 1% of revenue.
Operating expenses and other items
The Group achieved income from operations of $3.1 million in Q1 2009, up from
$2.4 million in Q1 2008. General and administrative expenses decreased to $6.4
million from $7.4 million in Q4 2008. However, the Group also incurred $0.9
million of non-cash impairment expense relating to fees and other costs incurred
in relation to the acquisition of IDT Financial Services which failed to
complete during the first quarter.
Cash position of the Group
Total Group cash was $76.5 million at 31 March 2009, which includes restricted
cash surpluses and the excess of EU customers' qualifying liquid assets over
balances payable. The working capital position of the Group, defined as current
assets less current liabilities, is approximately $63.9 million. Required cash
inventory comprising amounts held at processors, operating account balances to
cover payouts and the buffer on trust accounts is approximately $30 million,
resulting in "free cash" of about $33.9 million available for capital
expenditures and other purposes. The Group's focus during 2009 will be on
prudent cash management.
Business highlights
Early indications from the Net+ prepaid debit card programme provide encouraging
support for the differentiation strategy being developed around an end-to-end
payment solution that includes issuing and acquiring services connected to
virtual wallets for consumers. The Board remains confident that the Group's
strategic objectives will lead to significant improvement in the
Group's business performance and results over the medium term.
In the short term, the Group is responding to challenging economic conditions
with increased focus on revenue uplift opportunities and aligning the cost
structure to revenue generation expectations. Several initiatives are being
progressed to improve operating margins in 2009, such as relocation of contact
centre support and streamlining of payout processing.
Strategic developments
The Group announced on 20 March 2009 that the Gibraltar Financial Services
Commission ("Gibraltar FSC") would not grant consent for the proposed
acquisition of IDT Financial Services ("IDTFS"), a bank with a prepaid card
business, due to the unwillingness of a substantial shareholder (with controller
status) in NEOVIA to provide the requisite information to the Gibraltar FSC.
This acquisition had been announced on 1 December 2008 subject to regulatory
consent and would have cost the Group $15.05 million consideration, of which
approximately $10 million was regulatory banking capital. As a result of this,
the Group incurred approximately $870,000 of acquisition-related costs which
were taken as an expense in the first quarter of 2009. The Group remains
committed to developing its prepaid card business, building on the existing Net+
card operations, and the Group continues to explore strategic alternatives to
further this objective.
Management and board
The Group announced on 13 March 2009 that Ron Martin, President & CEO, would be
stepping down from his role with the Group and from the Board. The Group has
commenced a process to identify and appoint a successor to Mr Martin and in the
meantime he will continue in his role for a transitional period.
* * * * *
About NEOVIA Financial
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+(TM) and 1-PAY(TM) brands,
NEOVIA Financial 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 the company to
support thousands of retailers and merchants in many geographies and across
multiple industries.
NEOVIA Financial Plc (formerly NETELLER plc) is quoted on the London Stock
Exchange's AIM market, with a ticker symbol of NEO. Subsidiary company NETELLER
(UK) Ltd 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 or contact us by email at investorrelations@neovia.com.
First Quarter 2009 Unaudited Financial Information
+---------+-----+-------+-----+-----+-----+-------+-----+-----+-----+--------+-----+-----+-----+-------+-----+-----+
| | Q1 - 2009 | % revenue | Q1 - 2008 | % revenue | Q4 -2008 | | Q1 09 |
| | | | | | | | vs |
| | | | | | | | Q1 |
| | | | | | | | 08 |
+---------------+ + + + + +-----------+ +
| US$ | | | | | | % revenue | | Q1 09 vs |
| | | | | | | | | Q4 08 |
+---------------+-------------+-----------+-------------+-----------+--------------+-----------+-------+-----------+
| | | | | | | | | |
+---------------+-------------+-----------+-------------+-----------+--------------+-----------+-------+-----------+
| Revenue | 16,440,736 | 100% | 16,986,882 | 100% | 20,961,269 | 100% | -3 % | -22 % |
+---------------+-------------+-----------+-------------+-----------+--------------+-----------+-------+-----------+
| Direct | (6,901,984) | 42% | (6,417,515) | 38% | (7,558,983) | 36% | 8 % | -9 % |
| Costs | | | | | | | | |
+---------------+-------------+-----------+-------------+-----------+--------------+-----------+-------+-----------+
| Gross | 9,538,752 | 58% | 10,569,367 | 62% | 13,402,286 | 64% | -10 % | -29 % |
| profit | | | | | | | | |
+---------------+-------------+-----------+-------------+-----------+--------------+-----------+-------+-----------+
| | | | | | | | | |
+---------------+-------------+-----------+-------------+-----------+--------------+-----------+-------+-----------+
| General | (6,442,963) | 39% | (8,183,353) | 48% | (7,408,663) | 35% | -21 % | -13 % |
| and Admin | | | | | | | | |
+---------------+-------------+-----------+-------------+-----------+--------------+-----------+-------+-----------+
| Operating | 3,095,789 | 19% | 2,386,014 | 14% | 5,993,623 | 29% | 30 % | -48 % |
| income | | | | | | | | |
+---------------+-------------+-----------+-------------+-----------+--------------+-----------+-------+-----------+
| | | | | | | | | |
+---------------+-------------+-----------+-------------+-----------+--------------+-----------+-------+-----------+
| Other income | | | | | | | |
| (expense) | | | | | | | |
+-----------------------------+-----------+-------------+-----------+--------------+-----------+-------+-----------+
| Foreign | (18,324) | | (12,852) | | 244,872 | | | |
| exchange | | | | | | | | |
| (loss)/gain | | | | | | | | |
+---------------+-------------+-----------+-------------+-----------+--------------+-----------+-------+-----------+
| Management | (255,000) | | (451,515) | | 600,759 | | | |
| bonus | | | | | | | | |
+---------------+-------------+-----------+-------------+-----------+--------------+-----------+-------+-----------+
| Depreciation | (1,393,169) | | (1,568,804) | | (1,585,519) | | | |
| and | | | | | | | | |
| amortisation | | | | | | | | |
+---------------+-------------+-----------+-------------+-----------+--------------+-----------+-------+-----------+
| Stock | (677,416) | | (750,546) | | (641,291) | | | |
| option | | | | | | | | |
| expense | | | | | | | | |
+---------------+-------------+-----------+-------------+-----------+--------------+-----------+-------+-----------+
| Impairment | - | | - | | (14,498,163) | | | |
| loss | | | | | | | | |
+---------------+-------------+-----------+-------------+-----------+--------------+-----------+-------+-----------+
| Restructuring | - | | (9,029) | | (1,021,443) | | | |
| costs | | | | | | | | |
+---------------+-------------+-----------+-------------+-----------+--------------+-----------+-------+-----------+
| US | - | | (84,258) | | - | | | |
| related | | | | | | | | |
| costs | | | | | | | | |
+---------------+-------------+-----------+-------------+-----------+--------------+-----------+-------+-----------+
| Acquisition | (867,186) | | - | | (620,439) | | | |
| costs | | | | | | | | |
| impairment | | | | | | | | |
+---------------+-------------+-----------+-------------+-----------+--------------+-----------+-------+-----------+
| Loss on | (4,133) | | - | | (33,630) | | | |
| disposal | | | | | | | | |
| of assets | | | | | | | | |
+---------------+-------------+-----------+-------------+-----------+--------------+-----------+-------+-----------+
| Investment | (217,941) | | (100,000) | | (316,833) | | | |
| loss | | | | | | | | |
+---------------+-------------+-----------+-------------+-----------+--------------+-----------+-------+-----------+
| Loss | (337,379) | | (590,991) | | (11,878,065) | | | |
| before | | | | | | | | |
| tax | | | | | | | | |
+---------------+-------------+-----------+-------------+-----------+--------------+-----------+-------+-----------+
| Income | (143,960) | | (497,633) | | 2,396,054 | | | |
| taxes | | | | | | | | |
+---------------+-------------+-----------+-------------+-----------+--------------+-----------+-------+-----------+
| | | | | | | | | |
+---------------+-------------+-----------+-------------+-----------+--------------+-----------+-------+-----------+
| Net loss | (481,339) | | (1,088,624) | | (9,482,011) | | | |
| after tax | | | | | | | | |
+---------------+-------------+-----------+-------------+-----------+--------------+-----------+-------+-----------+
| | | | | | | | |
+---------+-----+-------+-----+-----+-----+-------+-----+-----+-----+--------+-----+-----+-----+-------+-----+-----+
+------------------+------------+-------+------------+------+------------+----------------------------------------+--------+------+
| KEY PERFORMANCE INDICATORS |
+---------------------------------------------------------------------------------------------------------------------------------+
| | Q1 - 2009 | | Q1 - 2008 | | Q4 - 2008 | Q1 09 vs | Q1 09 |
| | | | | | | Q1 08 | vs |
| | | | | | | | Q4 08 |
+------------------+------------+-------+------------+------+------------+----------------------------------------+--------+
| Total active | 92,757 | | 101,301 | | 97,673 | -8 | -5 % |
| e-wallet users | | | | | | % | |
| (in quarter) (1) | | | | | | | |
+------------------+------------+-------+------------+------+------------+----------------------------------------+--------+
| E-wallet revenue | $ 122 | | $ 113 | | $ 135 | 8 % | -9 % |
| per active | | | | | | | |
| e-wallet user | | | | | | | |
+------------------+------------+-------+------------+------+------------+----------------------------------------+--------+
| Daily sign ups | 1,023 | | 1,101 | | 928 | -7 % | 10 % |
+------------------+------------+-------+------------+------+------------+----------------------------------------+--------+
| Total e-wallet | 1,442,815 | | 1,097,456 | | 1,358,718 | 31% | 6 % |
| users (at period | | | | | | | |
| end) - ex NA | | | | | | | |
+------------------+------------+-------+------------+------+------------+----------------------------------------+--------+
| Average daily | $ 396,413 | | $ 447,758 | | $ 413,565 | -11 % | -4 % |
| receipts from | | | | | | | |
| consumers (2) | | | | | | | |
+------------------+------------+-------+------------+------+------------+----------------------------------------+--------+
| Total consumer | $ | | $ | | $ | -12 % | -6 % |
| receipts (2) | 35,677,159 | | 40,473,007 | | 38,047,954 | | |
+------------------+------------+-------+------------+------+------------+----------------------------------------+--------+------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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