Neovia revenue slides 21% in third quarter

NEOVIA’S REVENUE has dipped 21%, the online payments business’ third quarter results reveal.

The figures published today show revenue of $15.1m (£8.9m, €10.1m) representing a 21% year-on-year (YoY) decline on the $18.2m the business recorded in the same period in 2008

This included a $1.3m reduction in fees charged to NetBanx Asia customers.

Fee revenue of $14.9, down 15% from $17.5m in Q308, represented 98% of total revenues, with the significantly reduced deposit rates attaching to group cash balances delivering minimal interest income in the period. 

However a Neovia statement read that “that overall fee revenues for the second half of 2009 are expected to be similar to those for the first half of the year.”

The number of active e-wallet users in the period increased to 98,000, up 1% YoY, with growth being seen in Europe and Asia Pacific regions quarter on quarter, although the trend of e-wallet users generating lower fees per user seen in the first half of 2009 continued.

A note from broker James Hollins at Daniel Stewart read: “The net cash position remains strong, and we are encouraged by the multitude of recent and significant contract wins in the group’s NetBanx processing business.”

Recent contract wins and renewals include More Th>n, NPower, the extensions of its Ukash deposit option with Wallet One(W1) in Russia and the CIS, Payzone in the UK and Euronet Worldwide subsidiary epay in Poland; and a landmark deal withPayPal, the payments arm of online auction giant eBay, to include PayPal in the payment means offered by sites using Neovia’s Netbanx payments system.

Other highlights during the period included the official removal of the threat of legal prosecution agasint Neovia in the US after the expiry of the company’s Deferred Prosecution Agreement (DPA) from the US Attorney’s Office for the Southern District of New York.