21st Feb 2014 09:30
LONDON (Alliance News) - Gaming group Webis Holdings PLC Friday said it swung to a profit for the first half of the year, boosted by a 11% rise in revenues.
In what it said is traditionally the quieter half of its financial year, the group reported revenues of GBP79.2 million for the 26 weeks to the end of November 2013, up 11% on the GBP71.4 million recorded a year earlier. It said the increase was largely down to the introduction of wagering into Swedish racetrack pools and an earlier start to the racing season at the Cal Expo racetrack.
This helped the company swing to a net profit of GBP80,000 in the first half, compared with a net loss of GBP75,000 for the same period a year earlier.
The group reported a 34% increase in its gross profit to GBP2.6 million, up from GBP1.9 million in the prior year, despite an increase in the costs of sales and higher betting duty paid.
"The board is aware that there will be a number of exciting opportunities, as well as challenges, ahead for both of our operations within the forthcoming year. We remain very positive about the group's future and are confident that the progress that we have achieved thus far continues to place us in a strong position," said Chairman Denham Eke.
Webis said its betinternet business continues to trade in line with expectations, although it is particularly concerned about recent developments in Singapore, a significant Asian market. The government in the city state has said it is intending to introduce legislation to restrict remote gambling via internet or mobile device.
Webis said current trading in its Watchandwager business, which provides wagering facilities to customers, remains in line with the first-half, although bad winter weather in the US caused many race meetings to be cancelled.
"These adverse conditions have affected every US facing operator and we anticipate that handle levels will return to normal once the weather improves," it said.
"In relation to the watchandwager.com website, we are currently in advanced planning to substantially increase our marketing efforts to obtain new accounts not only from within California, but also the other US states from which we are licensed to accept wagers," the company added.
Webis said it expects to announce a major international partnership, which if signed would make a significant addition to WatchandWager's turnover and profitability.
Shares in Webis were up 7.8% Friday morning, trading at 4.45 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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