Fireone e-wallet results good, too

08.11.2005

Smart investors who invested in Neteller, arguably the most widely used e-wallet system in online gambling would have made a 300 percent profit from the share in 18 months based on the latest numbers (see previous report)

As reported earlier, Neteller produced excellent third-quarter figures with revenue more than doubled to $45 million compared to a year earlier, while pre-tax profits soared from $13 million to $26 million, giving a startling 58 percent pre-tax margin.

Rival FireOne has now followed Neteller with encouraging third-quarter results, too. The pre-tax margin may be lower, but the company still reported a 90 percent rise in revenue to $20 million, while pre-tax profit climbed from $4 million to nearly $6 million.

Interestingly, two of Neteller's founders have just cashed in some of their profits. Chairman Stephen Lawrence and fellow director John Lefebvre reportedly sold shares worth GBP 218 million yesterday, reducing their holdings from 49 percent to 20 percent.