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WEBIS HOLDINGS REVEALS INTERIM RESULT

Posted By Gambling Industy News On 2/8/11 : Board reviewing betinternet.com's strategy
 
Following a trading update in December 2010, online gaming group Webis Holdings plc released its interim results of the first six months (31 May 2010 - 28 November 2010) of its current financial year ending 29 May 2011.
 
The group comprises of two operations: betinternet.com a full-featured sportsbook portal with fixed-odds betting on all major sports as well as an instant, download and live dealer casino; and European Wagering Services (EWS) who own a totalisator hub which enables the passing of wagers directly into global racetrack betting pools, in real time.
 
Key Performance Indicators :
 
-  Profit for the period of GBP 162 000 (2009: loss of GBP 58 000)
 
-  Group turnover of GBP 55.6 million (2009: GBP 56.4 million)
 
-  betinternet sportsbook turnover of GBP 36.2 million (2009: GBP 38 million)
 
-  European Wagering Services' turnover of GBP 19.4 million (2009: GBP 18.4 million)
 
-  Gross profit increased by 11 percent to GBP 1.62 million (2009: GBP 1.46 million); gross margin increased by 0.33 percent to 2.92 percent (2009: 2.59 percent)
 
-  Increase in EBITDA to GBP 301 000 (2009: GBP 87 000)
·
 
Commenting on the results, Denham Eke, Chairman of Webis Holdings plc, said:
 
"I am pleased to report that the Group generated a net profit during the first six months of the financial year. Our betinternet.com sportsbook recorded a pre-tax profit following a successful World Cup tournament last summer, where the results were generally favourable for bookmakers. During the early part of the football season, the division's gross margin was also more stable than the prior year. European Wagering Services ("EWS"), our pari-mutuel operation, generated an overall increase in turnover during the period. However, the division's higher margin business was affected by the withdrawal of payment processing services for part of the period. EWS broke even at net profit level as a result.
 
Overall conditions in the markets served by the Group remain challenging. The board believes, however, that EWS is now well positioned for growth in the US market following the division's acquisition of a US licence. Whilst the benefits of our growth strategy for EWS may not become apparent until the new financial year, the board is of the view that it is important to invest in this part of the Group for the future benefit of shareholders. As previously announced, the board is reviewing it strategy for betinternet and this process is continuing. The board will provide a further update to shareholders as appropriate."



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