Q3 Trading Statement

 

TIDMNEO 
 
RNS Number : 1584C 
Neovia Financial PLC 
09 November 2009 
 
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NEOVIA Financial Plc 
 
 
Trading statement 
 
 
Monday, 9 November 2009 - NEOVIA Financial Plc ("NEOVIA", the "Company" or 
"Group") (NEO.L), the independent online payments business, today issues a 
trading update for the third quarter, being the three month period from 1 July 
2009 to 30 September 2009, in advance of reporting full year results for the 
twelve month period ending 31 December 2009. 
 
 
+-------+---------------------------------------------------------------------------+ 
| *     | Trading performance for the period in line with market                    | 
|       | expectations, despite continuing challenging market conditions.           | 
|       |                                                                           | 
+-------+---------------------------------------------------------------------------+ 
| *     | Fee revenue of $14.9 million vs $15.7m in Q2 2009.                        | 
|       |                                                                           | 
+-------+---------------------------------------------------------------------------+ 
| *     | Active e-wallet users of 98,357 up 3% from Q2 2009; daily sign ups        | 
|       | increased 9% to 1,115 over same period.                                   | 
|       |                                                                           | 
+-------+---------------------------------------------------------------------------+ 
| *     | Newteller platform on track to launch fully in Q1 2010.                   | 
|       |                                                                           | 
+-------+---------------------------------------------------------------------------+ 
 
 
Total revenue for the period was $15.1m, a decrease of 6% from Q2 2009 and 
down 21% compared to the third quarter of 2008. Fee revenue at $14.9m (Q2 2009: 
$15.7m; Q3 2008: $17.5m) represented 98% of total revenues with the 
significantly reduced deposit rates attaching to Group cash balances delivering 
minimal interest income in the period.  Reported fee revenue in the period was 
net of a $1.3m reduction in fees charged to NETBANX Asia customers (offset by an 
equivalent reduction in fee rebates, hence gross margins were maintained). 
Overall fee revenues for the second half of 2009 are expected to be similar to 
those for the first half of the year. 
 
 
The number of active e-wallet users in the period increased to 98,357, up 3% 
from Q2 2009 (95,492), and 1% ahead of the third quarter in 2008 (97,447), with 
growth being seen in Europe and Asia Pacific regions quarter on quarter. Sign 
ups of new e-wallet users have also shown positive trends, with 1,115 new 
average daily sign ups in the quarter, up 9% from Q2 2009 (1,022) and up 20% 
from Q3 2008 (929). However, the trend for active e-wallet users to generate 
lower fees per user, as seen in the first half of 2009, is continuing. 
 
 
The Group continues to make progress in diversification, with a number of 
significant contract wins for the NEOVIA Payment Suite including MoreTh>n, a 
number of MMOG merchants and the renewal of the Group's contract with npower. 
The Group has also added new payment options including PayPal to its NETBANX 
full service payment processing offering and has extended the UKash deposit 
option to nine further European countries. 
 
 
The Newteller platform is currently running in parallel with the existing system 
and the Group expects to complete the full switch over to Newteller on schedule 
in Q1 2010. 
 
 
Given current economic conditions, the Board continues to take a prudent view of 
the Group's short term outlook and continues to maintain tight control over 
operating costs and cash management. 
 
 
For further information contact: 
 
 
+-----------------------------------------+-----------------------------------------+ 
| NEOVIA Financial Plc                    | + 44 (0) 1624 698 713                   | 
| Andrew Gilchrist VP Communications      |                                         | 
| Email:[e-mail]      |                                         | 
| Twitter: https://twitter.com/neovia     |                                         | 
|                                         |                                         | 
+-----------------------------------------+-----------------------------------------+ 
| Citigate Dewe Rogerson                  | + 44 (0) 207 638 9571                   | 
| Sarah Gestetner / George Cazenove       |                                         | 
|                                         |                                         | 
+-----------------------------------------+-----------------------------------------+ 
| Daniel Stewart & Co Plc                 | + 44 (0) 207 776 6550                   | 
| Paul Shackleton                         |                                         | 
|                                         |                                         | 
+-----------------------------------------+-----------------------------------------+ 
 
 
 
 
 
 
 
 
* * * * * 
About NEOVIA Financial 
Trusted by consumers and merchants in over 160 countries to move and manage 
billions of dollars each year, NEOVIA Financial 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 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. 
 
 
NEOVIA Financial Plc is quoted on the London Stock Exchange's AIM market, with a 
ticker symbol of NEO.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 or subscribe at 
www.neovia.com/feeds/. 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
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