The online money transfers provider published its third quarter trading update highlighting a continued growth, while it continues to review its position with respect to the US market.
With the average daily receipts from customers up 46% to $5.3m, NETeller reported revenue for the third quarter of $66.7m, up 48% over the same period in 2005. In the first nine months of 2006, revenue is up 57% to $185.6 million.
Gross margin of 71.8% has remained in line with that recorded for the first six months of 2006, while profit before tax improved 24% to $32.5m in the third quarter and 35% to $90.5m in the year-to-date.
NETeller surpassed three million customers in August and closed the third quarter with 3,188,650 customers. Total active customers in the quarter were 619,550, an increase of 46% from Q3 2005 and an increase of 16% from Q2 2006. Of these 619,550 active customers, 536,146 were from North America, including 56,340 from Canada, 64,893 were from Europe and 18,511 were from Asia / Rest of the world.
Daily sign ups averaged 3,218 customers, up 4% from Q3 2005. Year-to-date sign ups are up 14% over the previous year. North American sign ups were 75% of total sign ups in the third quarter, Europe accounted for 19%, while Asia / Rest of the world represented 6.5%. During the quarter, 23% of NETeller\’s active customers came from outside of the US. Revenue per active customer in the third quarter was $108, compared to $106 in Q3 2005.
Commenting on the results, President and CEO Ron Martin said: “NETELLER has performed well during the third quarter of 2006, continuing to grow its business both geographically and extend its reach to new customers and merchants. However, the impact of the recently passed Unlawful Internet Gambling Enforcement Act in the US is likely to change the future direction and nature of our business fundamentally. While we have continued to see strong sign ups and fees during October, NETELLER is constantly re-examining its position with regard to the US market and its provision of services to that market is currently under review. As previously stated, NETELLER, a company registered outside the US, will comply with the Act and its related regulations as if it were subject to the Act’s jurisdiction. We will keep our shareholders, merchants, customers and employees informed of any developments during this challenging period.”
Calculators
