The online provide of pre-paid credit cards, Austins NetSpend, has reported strong 4th quarter results, with revenue up 18% and net profit up 80% in 2010, compared to the 4th quarter 2009.
Netspend’s niche is providing an alternative funding source for customers who do not have traditional bank accounts, but want an alternative to cash and money orders.
The company had a net profit of $6.3 million, compared with $3.5 million for the same quarter in 2009. The company reported fourth quarter revenues of $70.2 million, compared with $59.4 million in fourth quarter 2009. In a news release, Netspend indicated that jump in revenue and profits was primarily due to an increase in active cards, up to 2.1 million as of 31st December 2010.
Full years results for the year, predicted by analysts are between $323 million and $333 million and adjusted net income between $0.44 and $0.49 per share. Netspend went public last year, raising $204 million.