Paulo2
- 07 Nov 2005 07:53
- 824 of 1117
Great results from NLR:
NETeller PLC
07 November 2005
THIRD QUARTER TRADING UPDATE
NETELLER Plc ('NETELLER' or the 'Company'), a leading online money transfer
service provider, has continued to make further progress and rapidly expand its
base of customers and merchants during the third quarter of operations ending 30
September 2005.
Highlights
Average daily sign ups for the quarter: 3,085; total customers at
quarter end: 2,026,413
Average daily receipts from customers: $3.64m, up from $3.15m in Q2
2005
Revenues $44.9m, up 106 % over Q3 2004; gross margin for quarter of
73.9 %
Income before tax $26.3m; net income after tax: $23.6m; net margin
52.5 %
EPS for quarter $0.196 (11.1 pence) per share
Continued investment in developing the business through key
appointments and increased management focus on Asia region
Acquisition of Netbanx, a leading UK full service payment service
provider for $21.9 million (12.36 million)
Strong current trading in line with seasonal variations
NETELLER remains comfortable with market expectations for 2005
Gord Herman, Chief Executive Officer, commented 'I am pleased that we have
continued to grow the business in line with our strategic objectives. The third
quarter is traditionally strong and we have seen excellent growth across all
areas of the business on a year-to-date basis. Since his appointment as Chief
Operating Officer, Ron Martin has made a considerable contribution to all
operational aspects of the business, in particular the implementation of the
next generation system which remains on course. We look forward to the final
quarter of 2005 with confidence and expect to demonstrate continued progress.'
Enquiries:
NETELLER Plc 01293 897 515
Gord Herman, Chief Executive Officer
Ron Martin, Chief Operating Officer
Eric Hughes, Chief Financial Officer
Andrew Gilchrist, Vice President - Communications
Citigate Dewe Rogerson 0207 638 9571
Sarah Gestetner/Seb Hoyle/George Cazenove
Operational and Financial Highlights
All financial figures in US$ unless otherwise noted. All conversions to
Sterling are at a rate of US$ 1.77 to 1.
Sign ups
The Company surpassed two million customers in September and closed
the 3rd quarter with 2,026,413 customers. Daily sign ups averaged 3,085
customers for the quarter which was up 48 % from 2,085 in Q3 2004. Year-to-date
sign ups are up 64 % over the previous year. Traditional volume increases in
the month of August were less than expected for the season as a result of the
phased migration to the next generation IT platform which caused some disruption
to operations. Volumes returned to seasonally normal levels in September.
Average daily receipts
Average daily receipts from customers for the quarter were $3.64
million which was up 88 % on Q3 2004 and up 16 % on Q2 2005. Year-to-date
average daily receipts are up 98 % over the previous year.
Revenue
Revenue for the quarter was $44.9 million which is up 106 % from $21.9
million in Q3 during 2004. Year-to-date revenue of $118.4 million is up 115 %
from $55.0 million for the same period in 2004.
Gross margins
Gross margin of 73.9 % has improved from 73.2 % recorded for the first
six months of 2005, and represents a considerable increase from the 69.6 % gross
margin recorded in the same quarter period for 2004. The Company's scalable
operating platform continues to allow for increased volume of transactions to be
handled while maintaining a stable gross margin.
Income before tax
Income before tax improved 106 % to $26.3 million in the third quarter
compared with $12.8 million in Q3 2004. Year-to-date income before tax is $66.9
million, which represents an increase of 122 % from $30.2 million in the prior
year.
Income tax
Income tax expense for the current quarter is at approximately 10 % of
pre-tax income or $2.7 million.
Net income
Net income for the quarter rose to $23.6 million (up 176 % from $8.6
million in Q3 2004) bringing the year-to-date net income to $60.6 million (up
203 % from $20.0 million for the same period in 2004). Net income margin was
52.5 % for the quarter compared with 39.4 % for Q3 2004.
Earnings per share
Basic EPS for the quarter was $0.196 (equivalent to 11.1 pence per
share) based on the total shares outstanding of approximately 120 million. This
compares to EPS of $0.071 for the corresponding quarter in 2004.
Other 3rd Quarter Highlights
The Company has continued to strengthen its management team and has
made key appointments within the organisation, in particular in the marketing
and product development areas. In addition, the Company announced that Dale
Johnson, Director and Executive Vice President, has assumed the role of
President - Asia region on an interim basis to support and expand the work which
Benjamin Lee, Vice President & General Manager, has commenced in Asia. While
progress is being made, NETELLER is seeking to accelerate the pace of its Asian
programme in order to meet its key strategic objectives for this region.
The Company announced on 31 October the acquisition of Netinvest
Limited and its wholly owned subsidiary Netbanx Limited (together 'Netbanx'), a
UK based card processor, for $21.9 million (12.36 million) in cash, from
Transact Group. This is a key strategic acquisition for NETELLER, enabling
integration of the payment processing solution from customer to merchant.
Netbanx will provide NETELLER with the ability to process its own card
transactions, retaining a greater proportion of margins in-house, whilst also
generating additional revenue opportunities from leveraging Netbanx's existing
merchant base in the UK. The acquisition underlines NETELLER's position as a
leading payment provider to the e-commerce sector and the acquisition is
expected to enhance earnings in the first full year after acquisition and
provide operational synergies.
Current Trading
Since the end of September trading has continued to show positive
growth trends in both sign ups and average daily receipts, in line with typical
seasonal variations. The Company remains comfortable with consensus forecasts
for revenue, operating income and EPS for the current financial year.
Third Quarter 2005 Unaudited Financial Information
Unaudited Unaudited Unaudited Unaudited Unaudited % change
Q3 - 2005 9 months 2005 Q3 - 2004 9 months 2004 Q2 - 05 2005 to 2004 2005
US $ US $ US $ US $ US $ Q3 YTD Q3 to Q2
Revenue 44,942,816 118,427,490 21,865,128 54,989,202 39,291,120 106% 115% 14%
Direct Costs 11,722,016 31,429,535 6,652,711 16,897,467 10,376,466 76% 86% 13%
Gross profit 33,220,800 86,997,955 15,212,417 38,091,735 28,914,654 118% 128% 15%
General and 4,411,649 12,468,939 2,126,393 5,131,643 4,473,552 107% 143% (1)%
Admin
Operating income 28,809,151 74,529,016 13,086,024 32,960,092 24,441,102 120% 126% 18%
Other income(expense)
Foreign exchange (216,532) (53,048) 330,278 179,393 96,053
gain
Management bonus - (1,795,622) - (1,058,000) (17,613)
Depreciation and (1,335,674) (3,612,782) (647,513) (1,870,371) (1,363,910)
Amortisation
Stock option (981,249) (2,149,294) (693,044)
expense
Income before tax 26,275,696 66,918,270 12,768,789 30,211,114 22,462,588 106% 122% 17%
Income taxes 2,663,921 6,339,129 4,200,567 10,213,765 1,859,682
Net income after tax 23,611,775 60,579,141 8,568,222 19,997,349 20,602,906 176% 203% 15%
Daily sign ups 3,085 2,840 2,085 1,729 2,604 48% 64% 18%
Total customers 2,026,413 2,026,413 1,060,167 1,060,167 1,745,602 91% 16%
Average daily 3,640,823 3,222,446 1,935,976 1,628,825 3,152,212 88% 98% 16%
receipts from customers
Notes to Editors
The NETELLER Group
The NETELLER Group operates an online money transfer service that
utilises and extends the existing international banking structure to provide a
secure means of transferring funds worldwide. A NETELLER account acts as a
virtual wallet that enables customers (individuals who open NETELLER accounts)
to load, withdraw and transfer funds by purchasing e-money. E-money can be
instantly transferred to or from any merchant (or internet site) that supports
NETELLER's online payments system for goods and services. Additionally, funds
can be transferred between individual customers in peer-to-peer exchanges.
NETELLER has over 2 million customers and approximately 1,700 supporting
merchants, making the Company a leader in online payment services. NETELLER UK
Limited is authorized by the Financial Services Authority (FSA) to operate as a
regulated e-money issuer. Further information may be obtained from the
NETELLER's website at
www.neteller.com
.
This information is provided by RNS
The company news service from the London Stock Exchange
mickeyskint
- 14 Nov 2005 15:25
- 835 of 1117
From the other place. Worth a read.
mdchand - 14 Nov'05 - 10:46 - 15026 of 15059
Arbuthnot Broker Note - 11th November 2005
Gaming Corporation (GMC.L)
Strong Buy
Finals
November Tuesday Venue: TBC
Price 12p Mkt cap 33m FTA Leisure, Ent and Hotels 22
Strong niche position in a fast growing market We are hoping for an update on the integration of Gambling.com which it acquired earlier in the year the last comments from the group was that the business was exceeding expectations. The company will also have a few more months of mobile gaming business under its belt. Expectations were for 2,500 registered customers during the initial soft launch, although we believe that the company should be achieving significantly more than this figure. GMC has also been in talks with a number of other mobile companies based in Western Europe so we would anticipate more deals similar to the Orange contract over the next year. The group has also just launched its online poker sites.
We have a Strong Buy recommendation on Gaming Corporation and 21p target price
We expect 2005 to be the first time the company moves into profits we estimate 0.6m. Thereafter, we forecast profits of 3.1m, so there is a steep profit progression curve providing the company can continue to generate high levels of visitors through its portals and through its own casino and gambling products. On 2006 estimates, the shares look undervalued on a P/E rating of just over 12.5x. The company is in a strong position if consolidation picks up in the sector.
Paulo2
- 17 Nov 2005 09:32
- 842 of 1117
Poster on ADVFN spotted this:
CANACCORD broker note (issued at 8.37am)
November 17, 2005
Anthony Chow 44-20-7518-2772
Greg Harris 44-20-7518-2794
Gambling on Search Marketing
Event: On November 22, 2005 Gaming Corporation will announce its 2005 full year results for the 12-months ending September 30, 2005. We are forecasting revenue of 3.8 million, up 172% Y/Y and adjusted fully diluted EPS of 0.21p up from (0.44)p in 2004, driven by the recent integration of Gambling.com.
Impact: Given the rising industry levels of customer acquisition fees being charged to gaming operators, we are comfortable with our 2005 forecasts for the companys advertising revenues. We are expecting Internet advertising revenues of 2.9 million for 2005, up 277% Y/Y and net revenues of 0.5 million from the companys in-house gaming product up 80% Y/Y. We are expecting limited revenue from the newly launched mobile gaming product with the remainder of the revenue to come from the companys legacy Career Plus service.
Valuation: Pending the results announcement we are maintaining our BUY recommendation and 12-month price target of 25p, which implies 26.3 times our 2006 and 14.8 times our 2007 adjusted EPS estimates. We believe that the company will continue to benefit from rising customer acquisition fees and growth of the Internet and mobile gaming market.
Risks: Risks include continued US regulatory uncertainty relating to financial transactions and advertising in the Internet gaming space. We also believe that the companys strategy of new product additions and corporate acquisitions may also create risks for the company.
mickeyskint
- 17 Nov 2005 16:46
- 843 of 1117
From the other side. This guy is one of the more sensible posters from there, makes sence.
the analyst - 17 Nov'05 - 12:10 - 15300 of 15356
no problem paulo
If, as we expect the business is progressing well, then in my opinion the major factor holding back the share price could be the stake owned by Newbold. At the time of aquisition of gambling.com, Newbold were given cash and shares. 10 million of those shares went to institutions whilst the remainder (7.38m shares from memory) were held by Newbold with a lock-in period of 6 months. The lock-in period should have ended around November 3rd. As Newbold are a company and not in the business of share investing I would expect them to be cashing-in the shares to follow their own business interests.
With respect to the share price it's almost impossible to call without knowing how many shares are still held by Newbold and what they intend to do with them. They may still have a large stake and be expecting to sell into strength post-results, in which case we will see a depressed share price short-term followed by a drastic up-turn when the overhang is cleared, based on strong fundamentals.
Incidentally, Newbold's holding was just under 3% and so no announcements have to be made.