FireOne is a provider of payment processing services for the online gaming industry, providing the operators and customers of online casinos, poker rooms and sports books with a secure, convenient and cost-effective system to transfer funds. The company\’s electronic wallet, FirePay, is used for non-gaming purchases as well.
Financial and operational highlights for the first quarter include:
•69% increase in revenue over the first quarter of 2005 (on a pro forma basis) to $25.2 million. FirePay wallet revenue increased 104% over the first quarter of 2005 to $18.8 million.
•Payment volume increased 46% over the first quarter of 2005 to $377 million. FirePay wallet volume increased 71% over the first quarter of 2005 to $255 million.
•Gross profit, defined as revenue less transaction processing costs, improved as a percentage of revenues to 64.5% from 58.1% in the first quarter of 2005 (on a pro forma basis).
•Profit before tax increased 89% over the first quarter of 2005 (on a pro forma basis) to $11.4 million.
•Net profit increased by 119% over the first quarter of 2005 (on a pro forma basis) to $8.2 million.
Commenting on the results, Ben Dalfen, Chief Executive Officer, said:
“We are very pleased with our first quarter results, which reflect anticipated seasonal effects coupled with margin improvements. The revenue growth resulting from the shift in FirePay volume from our non-guaranteed model to our guaranteed model experienced in previous quarters has now stabilized with the mix in FirePay volume. The flexibility of offering merchants either a guaranteed or non-guaranteed model remains a key competitive advantage.”
“The increase in our margins results from the successful implementation of enhanced risk management initiatives, significant customer service improvements including the introduction of a dedicated VIP consumer department, and generally from the leverage inherent in our business. For the remainder of the year, we will continue to execute upon our strategy of expanding FirePay into new geographies, supporting our merchant base with the innovative features they require and strengthening the FirePay customer service offering in all areas.”
“Having made an excellent start to this financial year, we look forward to the future with confidence.”
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