Huge Losses for Neteller
11th March, 2008
Neteller, an online payments processor, have reported massive losses for the year of 2007.
The reported pre-tax losses amount to $185.7million for the full year, compared to a profit of $107million for 2006.
The losses included $136million they had to pay the US Government in settlement of the illegal operations they admitted to in that year (Unlicensed money transmitting and participation in the performance of financial transactions for the purpose of promoting unlawful transactions between internet gambling merchants and persons located in the US).
Breakdown:
• Total revenue dropped to $84million from $257.3million • Non-US operations revenue $69million – 15% increase • Margins were only 56% compared to 70% in 2006 • Fees per active player were $124 from $115 – 8% increase
As shown above, despite the costs being so high and revenue being so low, they are focusing on European and Asian markets, with a 15% increase in revenue outside the United States.
Ron Martin, Neteller's Chief Executive, said:
"2007 represented a milestone for the group as we successfully resolved our issues with the US authorities, and energetically refocused the business to put into action our updated vision and mission. The renewal of the group’s businesses to leverage changed market opportunities has created energy and enthusiasm throughout the organisation. I am confident this will be reflected in our performance in 2008".
Company spokespersons have also stated that trading from the first two months of this year have shown continued growth, along with the final payment of $39.25million to US Authorities.
