NETeller Delivers Profit Warning

29-Mar-2007, 06:25

NETeller, the well-known payment processor, has issued a profit warning just days after its announcement that it will stop processing payments for online gamblers in Canada from April 9 and in Turkey from this week.

Although non-gambling transactions will carry on being processed as usual in both countries, the online gambling industry is a key source of revenue for the company and NETeller predicts that the loss of Canadian business in this sector is 'likely to have a material negative impact on the group's results' this year.

Turkey represents a small percentage of group’s business and may not prove to be the most prosperous market for online gambling after laws were passed in February outlawing certain types of online gambling.

NETeller, which announced 250 job cuts in Canada and the UK last month, said that it 'does not anticipate making further significant reductions in staff.'

The company's shares have been suspended since January, the same month in which saw its founders Stephen Lawrence and John Lefebvre arrested on charges of conspiracy to transfer funds with the intent to promote illegal gambling.