Neteller Proposes New Trading Moniker

As was hinted at in its first-half results, Neteller has proposed to change its trading moniker to Neovia Financial -- meaning "new way."

In a circular to shareholders this morning, the Isle of Man company said it had, over the last 18 months, transformed its business, moving from the provision of an e-wallet service exclusively to a full payment services suite.

In a separate note to the London Stock Exchange this morning, the company said it is seeking to differentiate the parent company, currently known as Neteller Plc, from its brands on offer: Neteller, Netbanx and Net+.

Neteller, for reference, represents the company's e-wallet service; Netbanx, its full-service payment suite (including card and non-card services); and Net+, its card brand.

"Whilst a solid and respected name for the consumer e-wallet brand, as the moniker for the Group the NETELLER name no longer represents the value proposition and complete offer of the Group," the company said in the circular. "It is the Group’s belief that it will in fact impede the execution of the Group’s strategy moving forward."

The proposal will be voted on during an extraordinary general meeting for shareholders on Nov. 11. Until then, the company will continue to trade as Neteller Plc; however, if shareholders elect to adopt the new name, its ticker symbol would change to NEO.L from NLR.L.

IGN's Take

The name-change proposal -- even the name itself -- is apt, we think.

The company indicated on its half yearlies last month that it is working to diversify revenue away from Internet gambling -- "new way" seems a fitting choice.

Importantly, however, the Neteller e-wallet brand -- a mainstay with I-gamers and operators -- will remain in place.

"We suspect that a significant portion of the higher frequency (higher value) online gamblers have a NETELLER account and the operators cannot necessarily afford to forego offering a NETELLER payment function," James Hollins, an analyst with Daniel Stewart & Co. in London, wrote in a research note last month.

That the e-wallet is not being re-branded should have no effect, therefore, at the level of perception among both I-gaming operators and their customers.

Finally, a new name for the parent company should place welcome distance between "Neteller Plc" and its high-profile $136 million settlement with the United States Department of Justice.

(And hey, for the nerds among us, I haven't forgotten you. Neovia joins "neo" [from the Greek, neos: new] with "via" [from the Latin, via: way].)