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REDBET POSTS Q2 LOSS

Wednesday August 31,2011 :  SEK1.6 loss for Swedish online gambling group
 
Swedish online gambling operator Redbet Holding AB has posted second quarter losses of SEK1.6 million for the period ended June 30 2011
 
• Operating revenues amounted to SEK15.4 million (SEK16.5 million in Q2-2010), a decrease of 6.7 percent compared with the same period last year, and a decline of 10.4 percent compared with Q1-2011.
 
• Operating loss of SEK1.6 million.
 
• Registered player accounts at the end of the quarter showed an increase to 198 274 (Q2-2010: 128 900), with the number of active player accounts up at 20 9531 (Q2-2010: 17 267).
 
Operational achievements in the quarter included:
 
• New Whitebet.com launched as part of the Ongame Network. The product range has been updated with sports betting and a new online casino built on the same technology platform as Redbet.com.
 
• The range of live betting available was augmented with hockey through Redbet.com and Whitebet.com.
 
• i4poker.com and DoubleCardrooms.com, acquired in March 2011, were integrated with Redbet.com.
 
Subsequent to the quarter ending, Redbet reported the following:
 
• Redbet Gaming Ltd acquired Heypoker, a gaming-focused operation in Scandinavia and Eastern Europe. The deal includes free games and a customer base by about 37 000. Heypoker.com is also part of the Ongame Network.
 
Chief executive Jörgen Andersson reported a loss over the quarter of SEK1.6 million.
 
"The loss is mainly due to a natural seasonal variation with lower activity during the summer," Andersson explained. "The result includes non-recurring costs of about SEK 600 000 and the result was affected also by a reduced margin of games in the Gold Club Casino."
 
He added that the decrease in revenues was the result of lower activity levels during the summer among the poker and betting customers, as well as lower margins in the game Gold Club Casino.
 
Poker represented 38 percent of total group gaming revenue in the period, while betting and casino accounted for 32 and 30 percent respectively.
 
Increased staff costs pushed up operating expenses by SEK500 000, Andersson revealed.
 
"With a strong organization and expanded marketing budget, the company is well positioned to grow in autumn and beyond," Andersson concluded. "To accelerate growth, we have implemented another acquisition during the summer. In July, we acquired Heypoker, with 37 000 registered customers, mainly in Scandinavia and Eastern Europe. The acquisition of Heypoker will enable Redbet to increase revenues and improve profitability."



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