AIM-listed Neteller, a provider of Web payments services to the online gambling industry, has appointed payments industry veteran David Gagie as president of financial services as it looks to move into the more mainstream banking markets.
Neteller says it has hired Gagie to develop a financial services business as part of the diversified market strategy.
Gagie most recently worked with PayPal in California as a consultant to assist in development of a banking strategy.
He was formerly managing director of LloydsTSB's consumer lending and current account businesses in the UK. He also acted as chairman of the MasterCard UK board.
Neteller shares have taken a battering in recent months following the high profile arrests in the US of executives at UK online gambling firms Sportingbet and BetOnSports after authorites moved to clamp down on Internet gambling. The action has had a knock on effect on firms associated with the online gambling market, including Neteller which saw its share price slide 94 pence to 336 pence on Friday.
Despite the on-going uncertainty, Neteller says first half pre-tax profits rose 43% to $58 million, while reveues increased 62% to $119 million.
Earlier this year the vendor said it was launching German, French, Spanish and Italian versions of its service as well as a new payments platform, called 1-Pay, in Asia. Neteller says further initiatives are planned for Sweden, Denmark, Turkey, Poland, Brazil and Australia in the next six months.
Looking ahead, Ron Martin, president and chief executive officer, Neteller says: "Whilst the gaming industry is subject to continuing regulatory uncertainty, Neteller is well placed to report significant progress during the second half of 2006."