Neteller Says Second-Quarter Trading "Encouraging"

Neteller, the online payments processing group, said Tuesday that second-quarter trading was off to an "encouraging" start with April fee revenue up 15 percent to $3.8 million over the previous month.

Dale P. Johnson, chairman of Neteller, said in a trading update that the group has distributed its payment product suite across merchants with gambling -- and, increasingly, non-gambling -- interests.

Despite the typically slow second quarter, "initial indicators are suggesting that the impact of our broadening product range and focus are already beginning to deliver benefits to the Group," said Mr. Johnson.

Daniel Stewart & Co., broker to the London-listed group, is forecasting full-yearly earnings before interest, taxes, deductions and amortization of $15.4 million, with earnings-per-share of 7 cents.

In a research note issued Tuesday, James Hollins, analyst with Daniel Stewart, retained his "buy" recommendation and 100p price target.

In late-afternoon trading on the London Stock Exchange, Neteller was up 2p, or 3.25 percent, to 63.50.