NEOVIA’s income increased 31% in Q4

On Friday last week NEOVIA Financial Plc. Announced its trading update for the fourth quarter and year ended December 31 2008. According to the report NEOVIA’s fourth quarter revenue stood for around US$ 21.3 million which is an increase of 31% from Q4 2007 revenue of US$ 16.2 million and compared to US$ 19.1 million for the third quarter of 2008.

Fee income, excluding interest, rose by 43% to US$ 19.8 million as compared with the fourth quarter 2007. Interest income, as expected, decreased from US$ 2.4 million in Q4 07 to US$ 1.5 million in Q4 08, a drop of 38%. The group also recorded a slight increase in active e-wallet users in the fourth quarter, up to 97,673 from 97,448 in the previous quarter.

As reported in the official press release as of December 31 2008 total Group cash was about US$ 82.3 million including restricted cash surpluses and the excess of EU customers’ qualifying liquid assets over balances payable. The working capital position of the Group, defined as current assets less current liabilities, is approximately US$ 68 million. Required cash inventory comprising amounts held at processors, operating account balances to cover payouts and the buffer on trust accounts is approximately US$ 30.0 million, resulting in available “free cash” of about US$ 38.0 million. A substantial portion of this available cash is earmarked for capital expenditures in 2009 (including the completion of the “NewTeller” platform) and for the IDT acquisition.

Preliminary announcement of the 2008 audited full year report is scheduled to release around April 23, 2009.