Neteller Share Discussion Threads

[guidfarr] 07/11/2007 14:26

i've sold my holdings in neteller for now - a boost from 71 to 80 was good enough for me might get back in again at a later time

[mmc71] 07/11/2007 14:06

"Only 14% growth of active customers in Europe and asia actually seems a bit rubbish to me

I can finally see why the maket is valuing the company lower than i thought it was worth."

Interesting that you pick out Customer growth as rationale for valuing the company lower, totally ignoring Revenue growth (higher than Customer growth) and increased margins....

So you would actually rate a company higher if Revenue growth was small, but Customer growth was high????

Call me cynical but you dont have a short position to protect do you?

[dan1man] 07/11/2007 10:47

Only 14% growth of active customers in Europe and asia actually seems a bit rubbish to me

I can finally see why the maket is valuing the company lower than i thought it was worth.

[guidfarr] 06/11/2007 23:38

Third Quarter NETELLER Trading Update Shows Continued Solid Progress
By Press Release
Nov 6, 2007, 09:08


Tuesday, 6 November 2007 – NETELLER Plc (LSE: NLR), the world's leading independent global online payments business, today announces its trading update for the three months ended 30 September 2007.

# Highlights Continued progress to be pre-eminent provider of online gaming sector related payments solutions
# Active customers (ex North America) up 14% to 94,925 in Q3 2007 from 83,627(Q3 2006)
# Total revenue in Q3 2007 was US$ 16.9m – fee revenue ex-interest increased 25% from Q3 2006
# European revenue in Q3 2007 grew 19% to US$ 8.4m and Asia Pacific revenue grew 41% to US$ 3.0m both compared to Q3 2006 figures (ex-interest)
# Gross margin in Q3 2007 was 60%, compared to 55% in H1 2007
# Loss before tax in Q3 2007 was US$ 145.9m due to US forfeiture and related US expenses
# Cash at 30 September 2007 was US$ 149.4m; US$ 40m paid to US authorities on 15 October 2007
# Cash flow from operations positive in Q3 2007
Ron Martin, President & Chief Executive Officer of NETELLER, said "The third quarter has demonstrated the resilience of the NETELLER business and the results from our European and Asia Pacific businesses show that we are regaining the trust of customers and continuing to deliver innovative solutions to our merchants. Geographic diversification remains a key part of our growth strategy although the Board continues to be mindful of regulatory concerns in certain markets.

Our strong presence at EiG in Barcelona reiterated our commitment and focus to the online gaming sector and I believe we are progressing well in one of our core mission objectives, to be the pre-eminent provider of payment solutions for selected markets in the online gaming sector. The launch of the first phase of our global card programme is proceeding as planned and we are on track to offer additional card-related services during the first half of 2008.

The Board remains confident about prospects for the business for the full year and beyond."

Operational and Financial Highlights
All financial figures in US$ unless otherwise noted.

Customers and Sign ups
The Group's active customer base in Q3 2007 increased to 142,153 from the 117,056 active customers recorded in Q2 2007. The Q3 2007 figure included 47,150 active customers in North America whose only "active" transaction was a withdrawal of funds from their NETELLER e-wallet. The number of non-North American active customers at the end of Q3 2007 was 94,925, an increase of 14% from the end of Q3 2006. The regional distribution of active customers included 72,849 in Europe (an increase of 12% over the corresponding period in 2006) and 17,638 in Asia Pacific (up 21% from the same period in 2006). These results demonstrate the Group's continued focus on the markets of Europe and Asia Pacific.

See the table in the PDF version of this press release for details of active customers by region.

The Group's total customer base (including North American customers) at end of Q3 2007 was 3,839,807. The total, excluding North America, was 895,334 customers, an increase of 61% from the figure at 30 September 2006.

Average daily receipts from customers were approximately US$ 295k during Q3 2007 (Q3 2006: US$ 5.31 million). The decrease of 94% was principally due to the withdrawal from the North American market during the first quarter of 2007. Total receipts from customers during the period totalled US$ 27.2 million.

Average daily sign-ups of new customers was 900 during Q3 2007 (Q3 2006: 3,218) representing a decrease of 72%. Again, this decrease was almost entirely attributable to the withdrawal from servicing the North American market during Q1 2007. In Q2 2007, 937 new customers per day signed up for the Group's e-wallet.

To view the entire Press Release, click here.

Shares of Neteller plc (LSE:NLR) climbed 2.1% in early trading today to 73.00 pence.

check the official release here


seems very nice!!!

[stewjames] 06/11/2007 21:01

Edit Dealy, I agree with your ballpark earnings estimate (7M, though I'd go for 5-6M) but not with the way its arrived at. That $100K/day quoted figure is rough and doesn't work as a basis for calculations. For instance, it projects $9M/quarter, which is a *huge* decline over total revenues, and even a fairly sizeable decline over revenues excluding interest and netbanx. Also, you're underestimating central costs significantly. General and admin was 7.5M in Q3, virtually identical to Q2 which pretty much confirms what they said in the conference call about the Q2 figures being representative of the ongoing cost basis. It sounds like it's going to get lowered a bit long term, but you're still looking at nearer $30M than $20M per year.

[guidfarr] 06/11/2007 19:42

it is not sold out at 80, the results are good and I'm expecting some more upside as the news into the public....

[dan1man] 06/11/2007 17:41

brave man to sell this share

you'll probably be proven right, but given it wont be long before its worth twice this price, it seems risky to sell at any point.

[kanwar] 06/11/2007 16:20

Just get the feeling there some news coming soon....

[guidfarr] 06/11/2007 15:49

yep already a nice 10% profit for me!!

[kanwar] 06/11/2007 15:15

NICE STEADY CLIMB TODAY..BODES WEE FOR FUTURE ( WITH OCCASSIONAL DIPS)

[no fear no greed] 06/11/2007 14:25

At one point it was 79 to buy and sell

Regards: NFNG

[dealy] 06/11/2007 09:38

I reckon they will have $100mm in net cash by January 2008 based on the position at the end of September less $76m to be paid then in US settlement charges and the receipt of 39m CAD for the sale of the office building.

We also know that as of October they are generating $100k per day in revenue so that equates to about $35m a year. Their gross margin in 60% so that gives about $21m in gross margin or £10m. Out of that comes some taxes, depreciation, maybe some central costs etc so I reckon they'll make about £7m net profit during the next 12 months.

So that's an EPS of about 6p.

It's growing though and it's a high operating leverage business which means profits increase much more rapidly than revenues do.

[supersturrock] 06/11/2007 09:25

Anyone got any back of an envelope e.p.s. forecasts ? Looks like they posted a trading loss of around $ 2.5 m in this quarter. Probably breakeven in Q4.

[kanwar] 06/11/2007 08:31

looking for a nice steady climb over the next 6-9 months...my target £1.40-60

[aspex] 06/11/2007 08:14

Are we on track for 100p+ then?
Maybe even 200p when?

[kanwar] 06/11/2007 08:13

Seems ok to me...

[welsheagle] 06/11/2007 07:38

Neteller Q3 Trading Update




RNS Number:0846H
NETeller PLC
06 November 2007


NETELLER Plc


THIRD QUARTER TRADING UPDATE SHOWS CONTINUED SOLID PROGRESS


Tuesday, 6 November 2007 - NETELLER Plc (LSE: NLR), the world's leading
independent global online payments business, today announces its trading update
for the three months ended 30 September 2007.

Highlights


* Continued progress to be pre-eminent provider of online gaming sector
related payments solutions


* Active customers (ex North America) up 14% to 94,925 in Q3 2007 from
83,627 (Q3 2006)


* Total revenue in Q3 2007 was $16.9m - fee revenue ex-interest increased
25% from Q3 2006


* European revenue in Q3 2007 grew 19% to $8.4m and Asia Pacific revenue
grew 41% to $3.0m both compared to Q3 2006 figures (ex-interest)


* Gross margin in Q3 2007 was 60%, compared to 55% in H1 2007


* Loss before tax in Q3 2007 was $145.9m due to US forfeiture and related US
expenses


* Cash at 30 September 2007 was $149.4m; $40m paid to US authorities on 15
October 2007


* Cash flow from operations positive in Q3 2007




Ron Martin, President & Chief Executive Officer of NETELLER, said "The third
quarter has demonstrated the resilience of the NETELLER business and the results
from our European and Asia Pacific businesses show that we are regaining the
trust of customers and continuing to deliver innovative solutions to our
merchants. Geographic diversification remains a key part of our growth strategy
although the Board continues to be mindful of regulatory concerns in certain
markets.



Our strong presence at EiG in Barcelona reiterated our commitment and focus to
the online gaming sector and I believe we are progressing well in one of our
core mission objectives, to be the pre-eminent provider of payment solutions for
selected markets in the online gaming sector. The launch of the first phase of
our global card programme is proceeding as planned and we are on track to offer
additional card-related services during the first half of 2008.


The Board remains confident about prospects for the business for the full year
and beyond."

[maestro4] 05/11/2007 21:41

will open at 80p...

[dealy] 05/11/2007 21:37

80p tomorrow.

[kanwar] 05/11/2007 16:13

brian1944..who knows????

[brian1944] 05/11/2007 14:48

kanwar 2 years time.

[guidfarr] 05/11/2007 14:40

well I've topped again now i hold 30,000 of this!