NETELLER Profits Plunge
By staff
Online payment solution specialist NETELLER has announced that it is targeting alternative markets and making solid progress despite its third quarter results showing an operating loss of $146 million.

The Isle Of Man-based firm saw its founding two members arrested by the US Department Of Justice earlier this year for breaches of the Unlawful Internet Gambling Enforcement Act (UIGEA) and was forced to forfeit $136 million to authorities as settlement.

Releasing the e-processor's third quarter numbers, the company’s Chief Executive Officer, Ron Martin, stated that the long-running legal battle with the Americans would make 2007 a year he would be unlikely to forget.

The passage of UIGEA, the arrests and the penalty saw the company post a total operating loss of $146 million with revenues falling by 75 percent from $67 million last year to $17 million for the quarter.

In addition, due to the company’s withdrawal from the US market, its average daily receipts were reported as $295,000 per day from $5.3 million for the same period last year when the American business was buoyant.

Martin reported that Europe now accounted for approximately $8.4 million of the company’s third quarter revenues with Asia accounting for $3 million as the company diversifies geographically to address the American losses.

'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,' said Martin.

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