Despite an upbeat first-half trading update and a "buy" recommendation from its broker, shares in Neteller, a British online money-transfer company, fell nearly 8 percent Thursday on the London Stock Exchange.
The company, a year removed from announcing its $136 million settlement with the United States Department of Justice, projected second-quarter revenue would exceed that from the first, $17 million, by 10 percent.
E-wallet fee revenue -- merchant and customer fees generated via use of the company's e-wallet -- has shown double-digit, quarter-on-quarter growth, it said. E-wallet revenue during the first quarter of the 2008 fiscal year totaled $11.4 million.
Neteller said signups and customer growth followed past trends, whereby second-quarter metrics show reduced growth when compared to those from the first.
The company spreads its business across Europe -- its main market -- the Asia-Pacific region and "the rest of the world."
During the first quarter, active e-wallet users in Europe were up 5 percent over the fourth quarter of last year; however, active users across Asia and the rest of the world were down 13 percent and 1 percent, respectively.
Daniel Stewart & Co., the company's London broker, said it expects full-year profits before tax of $12.1 million, with earnings per share of 7 cents.
Neteller's market capitalization stands currently at $126.1 million.
Since May 15, when shares were trading at 73 pence, they've lost approximately 20 percent of their value.
Chris Krafcik is the editor of IGamingNews. He lives in St. Louis, Mo.