• Neteller tells the extent of United States Damage

    25 July 2007


    Neteller tells the extent of United States Damage
    And Plans to return US customers’ Funds

    Neteller has revealed the full extent of damage done when it was forced to withdraw from the US.

    As of March 2007 a loss for three months totaled $14 million, after a reconstructing cost of $12 million along with other expenses when the company posted a pre-tax loss. After a $16 million profit from the previous year.

    Neteller says it has undertaken a “major exercise to realign the cost base with anticipated revenues on a worldwide basis” and said “They now employ 425 people worldwide.

    The $136 million settlement with the US authorities left Neteller a cash balance of $74.5 million.

    Although the Neteller announced the re-admittance to the Alternative Investment Market, the statement shows that the active customer base outside of the United States is down two-thirds to 99.575.

    For the first quarter, group revenue, including a partial contribution from the USA and a full quarter’s contribution from Canada was $32.7 million from $71.8 million, which included approximately $14 million in USA revenue.

    The USAO was a little scared, not knowing which parts of Europe they will be active in. Says “It don’t want to take any more risk.” The analyst also added that the market was different in Europe, where online gaming customers have a lot more trust and faith than did their equivalents in the USA.

    Last week Neteller announced its deal with the US Attorney’s Office for the Southern District of New York, where they plead to certain charges in exchange for the cash settlement of $136 million. Following the guilty pleas of founders and ex-directors, Stephen Lawrence and John Lefebvre.

    Neteller also confirmed that it continues to progress its plans to implement the Distribution Plan for the return of approximately $94 million of United States Customer Funds by July 30th, 2007.

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