Gaming VC reports €16m pretax profit

European online gambling group Gaming VC, has posted preliminary results for the year ended 31 December 2008 and Q1,2009 trading update showing a pretax profit of €16 million.

The group operates 6 online casino, poker and gambling sites, including Casino Club, Casino Club Poker, Poker Kings, Betaland and WinZingo.

Financial highlights include:

• Net Gaming Revenue up 17.5% to €50.1 million
• Gross profits up 22.5% to €40.9 million
• Non-German business now generating 31% of contribution (2007: 21%)
• Operating profit increased to €16.4 million (2007: €16.2 million)
• Profit before tax rose to €16.9 million (2007: €16.6 million)
• Cash at bank (net of customer balances) as at 31 December 2008 of €17.5 million and €24 million as at 17 April 2009

Operational Highlights

• Board strengthened through appointment of Richard Cooper as Group Finance Director and Karl Diacono as Non-Executive Director, both of whom have significant industry and regulatory experience
• Diversification outside Germany continues successfully
• Long term contract signed with Boss Media in March 2009
• Operational hubs in Malta and Tel Aviv are now fully established
• Final stage of negotiations to acquire a leading South American online sports and gaming business.

Reporting on Q1,2009, the company indicated that NGR is up 12% to €14.9 million and 26% higher than Q4,2008. Contribuition from non-German NGR was €8.4 million as the group continued its diversification strategy, representing 56% of total NGR. In Q1,2009, sports bets were up 46% compared to the Q1,2008, with gross win margin in this sector up 7% to 23% compared to the same period in 2008.

Commenting on the results, Kenneth Alexander, Chief Executive of Gaming VC said: "I am delighted that our strategy to diversify the group's product offering away from Germany continues to be successful. Our non-German brands are growing strongly and their percentage contribution to group revenue is increasing. We continue to seek acquisition opportunities in selected additional markets. In the first three months of 2009, trading has been slightly ahead of our expectations across all divisions of the group and I am cautiously optimistic that 2009 will be a successful year."

Source: InfoPowa News

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