Firepay profits double as poker boom continues

25.08.2005

E-Cash processor and e-wallet company Firepay has experienced massive growth and is making a substantial contribution to Canadian parent company Fireone, which has seen first-half profits double.

The firm, which listed on the London Stock Exchange's AIM market in June, posted a pre-tax profit of US$13.3 milllion in the first half of 2005.

The majority of the firm's revenues, 84 percent, come from the US where credit-card payments continue to present difficulties to operators.

Many issuing banks continue to block egaming transactions, which has forced consumer to use ewallets such as Firepay and NETeller.

Fireone makes 90 percent of its profits from its Firepay ewallet, despite nearly 40 percent of its transaction volume coming from credit card processing.

Firepay recently introduced a guaranteed payment option for merchants, which has led to an increase in revenues.

The value of Fireone shares has doubled since listing in June, echoing the success of rival firm Isle of Man-based NETeller.

Mitch Garber, executive chairman, said he expected revenues of US$32.5 million to be exceeded in the remainder of the year. "We anticipate further opportunities resulting from future expansion into new geographical markets and from the ongoing additions to features and functions of our Firepay wallet offering," Garber said.