The online money transfer service provider released a trading update for the first quarter 2006, which showed a 69% increase in revenues up to $57.9m from $34.2m in Q1 2005, and an increase of 8% from $53.6m in Q4 2005.
Gross margin of 73.5 % has improved from 72.7 % recorded for the first quarter of 2005, while it remained stable compared with gross margin recorded for the whole of 2005. Operating income improved 62 % to $33.8m compared with $20.8m in Q1 2005. Income before tax improved 53% to $27.7m compared with $18.2m in Q1 2005, while net income for the quarter rose to $26.5m, up 62 % from $16.4m in Q1 2005.
Total receipts from customers during the first quarter of 2006 were $422.3m, with average daily receipts up 64% to $4.69m on Q1 2005 and up 12 % on Q4 2005.
NETeller surpassed two and half million customers in mid February 2006 and closed the first quarter with 2,645,502 customers. Daily sign ups for the quarter averaged 3,609 customers, up 26 % from 2,862 in Q1 2005 and 13% from 3,197 in Q4 2005.
Other operational highlights for the period included the launch of an updated version of the Japanese language service following successful beta-testing.
“Our growth in the first quarter demonstrates the potential of the \’deepen and extend\’ strategy within our core business, through innovative product developments such as our European localisation program, our Asian e-wallet launch and credit card decline initiative. We are committed to improving NETeller\’s offering to its customers and merchants, through continued investment in quality people and technology. The Board is confident that NETeller will continue to enjoy growth in line with historic seasonal variations and meet analysts\’ expectations for the full year,” commented Ron Martin, President & CEO.
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