Neteller Release Upbeat, Shares Indifferent

Neteller, the online money-transfer company, has announced a number of client wins, joint marketing contracts and upgrades to its e-wallet -- announcements that have earned solid reviews from analysts but, curiously, have gone over neutral with the London market this morning.

With regard to new clients, Genting Stanley -- whose subsidiary, Genting Stanley Alderney Ltd., operates the Circus Casino brand online -- and BetClick, the London online bookie, have agreed to take on Neteller's payment processing services.

With regard to joint marketing contracts, the company has done deals with Bet365 Group Ltd. and Betfred, the British bookmakers, as well as with Purple Lounge, the online casino and poker room. The agreements are "multi-quarter," Neteller said in a prepared statement.

The Isle of Man company has also made its e-wallet available in Eastern Europe, with Estonia, Hungary, Latvia, Lithuania, Slovakia and Slovenia online.

Additionally, the e-wallet can now be topped up via POLi, a payment service offered via its joint venture with Centricom Pty Ltd. of Australia; Carte Bleue of France; CartaSi of Italy; DirectPay24 of Germany; and Ukash of the United Kingdom, Europe and South Africa.

Finally, the e-wallet now accepts the Hungarian forint (about $1 to 164 Hungarian forint) and the Polish zloty (about $1 to 2.25 Polish zloty).

"Neteller's decision to make the e-wallet available in Eastern European countries fulfils the objective stated at the interims of expanding the number of active users in Europe," Ivor Jones, an analyst with Evolution Securities in London, said in a research note this morning. "Internet penetration, online gaming and affluence is growing in these markets and Neteller should be a key beneficiary."

"NETELLER’s investment in its product suite and integrated platform are driving attractive new strategic avenues for growth and revenue/profit upside," echoed James Hollins of Daniel Stewart & Co. in a note this morning. "We expect these announcements to be well received by the market, and also by existing clients and new merchants looking to contract with NETELLER."

Neteller, with a market capitalization of £71.4 million, was down 2.75 pence, or 4.38 percent, to 60 pence in mid-morning trading.