6th Dec 2007 07:01
Gaming VC Holdings S.A.06 December 2007 Press Release 6 December 2007 Gaming VC Holdings S.A. ("Gaming VC" or "the Company") Trading Update Gaming VC Holdings S.A. (AiM:GVC), a leading European online gaming provider, ispleased to announce the following update on trading. Gaming VC is confident that current trading is slightly ahead of management'sexpectations for full-year forecasts, reflecting the additional sportsbookrevenue since the successful launch of its Maltese operation in August 2007.The Company has also benefited from reduced operational costs including there-negotiated Casino service contract in the second half of the year and thecessation of the direct mail campaign in May 2007 in favour of increased CRMfocus and affiliate campaigns. The current expectations for the full yearassume gross win rates that are in line with the year to date. Securing the EU license in Malta and ensuring that all of Gaming VC's Germancustomers will be playing in the Maltese Casino by the end of 2007 mitigates theCompany's risk profile given that no clarity has yet been provided on how theproposed German State Treaty on Gambling will be implemented in 2008. Theproposed draft was in violation of Community Law. Unaudited gross win to date is identified below: Euro '000 YTD YTD 5 mths 5 mths Nov-07 Nov-06 H2 07 H2 06 H1 07 H1 06Gross WinCasino 35,254 35,414 14,771 15,004 20,483 20,410Poker 2,915 1,942 1,397 1,144 1,518 798Sportsbook 945 - 945 - - -Total 39,114 37,356 17,113 16,148 22,001 21,208Funded Sign ups* 43,568 30,366 18,432 14,907 25,136 15,459 *New players per day The Company had an unaudited cash balance of €14.8 million as at 30 November2007. New funded accounts increased by 24 per cent. compared to the same period lastyear. Overall casino and poker volumes have been flat in the last five monthshowever the successful launch of Gaming VC's new sportsbook at the end of August2007, generated €6.5 million in turnover in its first three months of trading,representing a 14.4 per cent margin of €945k. This has allowed the Company tonot only register growth in terms of margin and new funded accounts but also todiversify away from its core German business. KPIs in the second half of 2007 show that the overall gross win was 6 per cent.ahead of the same period last year. In the 11 months to the end of November2007 the margin generated from all products is 5 per cent. ahead of thecorresponding period last year. Kenneth Alexander, Chief Executive of Gaming VC, said: "Securing the Malteselicense and moving our core business there positions Gaming VC well to reducelegislative risk to its operations in Germany and to provide an additionalplatform to expand our business. We continue to believe that our year-endprofits will be slightly ahead of market expectations and are confident that thebusiness will continue to grow and diversify away from its core German businessduring 2008." - Ends - For further information:Gaming VC Holdings S.A.Kenneth Alexander, Chief Executive Tel: +44 (0) 20 7398 [email protected] www.gamingvc.com Arbuthnot Securities Limited Tel: +44 (0) 20 7012 2000Nick Marsh, Corporate Finance Paul Vanstone, Corporate Finance www.arbuthnotsecurities.co.uk Media enquiries:AbchurchChris Lane / Franziska Boehnke Tel: +44 (0) 20 7398 [email protected] www.abchurch-group.com Notes to editors Gaming VC is a leading provider of casino, poker and skill games in Europeanmarkets. The Group is headquartered in Luxemburg and licensed in Curacao,Netherlands Antilles and Valletta, Malta. In December 2004, Gaming VC's shares were admitted to the AIM market of theLondon Stock Exchange. Gaming VC's management team has a wealth of experience in the gaming industryand has a significant track record in successfully identifying and penetratingnew markets. The Group is focussed on delivering an innovative product offeringand is dedicated to providing sophisticated Customer Relationship Management(CRM) to ensure high levels of customer satisfaction. Gaming VC's offering includes traditional casino products such as roulette andblackjack, a variety of poker games and a sportsbook. Gaming VC uses Internet marketing and affiliate networks for customeracquisition as well as direct mail as a tool for customer retention purposes.Gaming VC has no and has never had any operations in the US. Further information on the Company is available at www.gamingvc.com. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
GVC.L