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Gambling : Media Corporation Returns to Profit
5/28/10 - The UK online media group Media Corporation plc has made a welcome return to profitability in the first half of its financial year, thanks principally to a significant 415 percent boost to revenues from its recently acquired online gambling subsidiary Purple Lounge.
The welcome was evidenced by a 30 percent rise in share price in the wake of the results.
Media Corp's H1 2010 shows profit from continuing activities at GBP160 000, compared to a loss of GBP900 000 in H1 2009.
The group generated total revenue for the period of GBP10.3 million (H1/2009: GBP 2 million), mainly as a result of a surge in internet revenues following the acquisition of Purple Lounge.
Advertising network revenues rose to GBP 1.92 million from GBP 1.42 million in H1/2009, while revenues from internet publishing surged to GBP 8.41 million from GBP 580 000 last year.
Gross profit for the period grew 400 percent to GBP 2.95 million from GBP 580 000 in the prior-year period.
Justin Drummond, chief executive officer said: “Following the board’s strategy to reduce overheads and move back into online gaming via the acquisition of Purple Lounge, the first six months of the financial year represent a significant turnaround in the fortunes of the group.”
Drummond noted that the second half of 2010 has started strongly, with record revenues across the group in April. The company anticipates that this trend will continue and bring an excellent outcome for the rest of the year.
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