This week's stream of trading updates continues as Neteller this morning said fourth-quarter trading has met management expectations, and projected that its full-year results would meet market expectations.
Concerning its ongoing settlement with the U.S. Justice Department, it said it would make the final payment of $38.25 million on Jan. 16, completing its financial obligations to the government as laid out in its deferred prosecution agreement.
In July, the company agreed to disgorge $136 million to the United States. Neteller said initially that the sum included the estimated $60 million seized in January by the U.S. Attorney's Office for the Southern District of New York (USAO); but the company said today that $57.7 million -- not $60 million -- was seized by the USAO.
As part of its deal with the USAO, Neteller had also agreed to return approximately $94 million in funds owed to its U.S. customers. According to this morning's release, the group has repaid roughly $81 million. Any unpaid amounts, it said, are being held in trust accounts with the group's bank. U.S. customers have until Jan. 26, 2008 to withdraw their funds via the Neteller Web site.
To date, Neteller and BetonSports are the only major, London-listed I-gaming businesses to settle with DOJ. PartyGaming and 888, also listed on the LSE, voluntarily entered into talks with the DOJ last spring regarding their activities stateside prior to the October 2006 enactment of the UIGEA.
Looking ahead, the company said it has been working to revitalize its consumer brand, and has re-launched the brand to "appeal directly to the group's core demographic, with an offer of a suite of lifestyle financial services for the online generation."
Neteller also said that it planned to announce details during the first quarter regarding a new suite of e-commerce applications for both gaming and non-gaming merchants.
"Considering the significant challenges that our company has face during the past year, I am pleased with the performance of the business in 2007 and I am excited about the prospects for 2008," said Neteller Chief Executive Ron Martin.
Neteller's full-year results are due to be released on March 11.
In late-afternoon trading on the LSE, Neteller was up 3p, or 5.36 percent, to 59.00.
Chris Krafcik is the editor of IGamingNews. He lives in St. Louis, Mo.