NETeller Moves Back Towards Respectibility

NETeller, an online payment processor, is back on its feet and making money after a rough 2007. Just last year, the company was found guilty by American authorities of dealing with billions of dollars of online gambling monies. As a result, NETeller paid the American government a total of $136 million after John David Lefebvre and Stephen Lawrence, the company's co-founders, were arrested at the beginning of 2007.

The recovery began with a move from Canada to the Isle of Man and staff layoffs of almost 700 employees, bringing down the company's overhead. With the Unlawful Internet Gambling Enforcement Act (UIGEA) effectively outlawing online gambling in America, NETeller also began targeting other customers including the Asian market. With 80% of their revenues coming from online gambling, the payment processor had no choice but to look outside of the American market. Since 2006, their customer base outside America has increased by 10% and new registrations this quarter are up 6% from the fourth quarter of the past year.

Although NETeller claimed a loss of $185 million for last year, CEO Ron Martin is optimistic, saying, "We see margins moving significantly north over the next couple of years...the low 60's in 2008 and the mid 60's in 09."