SOURCE: Reuters

(London, England) — Payment processor NETeller (NLR.L: Quote, Profile, Research) revealed the full financial impact of its troubles in the United States on Tuesday, reporting a third-quarter loss of $146 million (70 million pounds).

The firm, which was ordered in July to stop processing payments from U.S. punters and pay authorities $136 million, said it remained confident about prospects for the business for the full year and beyond.

NETeller has so far paid $100 million of the fine and will pay the remainder in January.

The forced U.S. withdrawal not only landed NETeller with the hefty penalty but also closed off its biggest market. Like many online gaming operators, its is now having to rebuild its business by finding new European and Asian customers.

European revenue grew 19 percent in the third quarter to $8.4 million while Asia Pacific revenue grew 41 percent to $3 million as its customers outside the U.S. rose by 14 percent to 94,925.

Shares in the firm were up 8.4 percent to 78 pence by 2:40 p.m. British time. Two years ago at the height of the Internet gambling boom the company's shares changed hands at around 700 pence.

According to a Reuters Estimates poll of three analysts, the firm is expected to post revenues of $76.5 million this year falling to $74.6 million next year as the flow of funds from the United States finally dries up.

Chief Executive Ron Martin said margins would continue to recover and the firm could top analysts' forecasts for next year.

"Do I think there is some room to do better than that number (2008 revenue forecast), yes I do... Our active numbers have stabilised and I now would like to see them growing," he told Reuters.

"We are beginning to see improvements in our margins...we can certainly maintain it and I think there is opportunity to improve."

"We used to operate in the 72-73 percent range so can get back in that range over time, I think we can."

Martin added the firm had seen a strong uptake for new cards, which customers can use as pay-as-you-go payment cards in shops.

"Around 18,000 (cards) were issued in Q3... we expected probably closer to 10,000 to 12,000."