1/21/10 – Online gaming and media group Media Corporation expects to report a loss for the year to September 2009 but says it returned to profitability in the first quarter of the current year.
Q1 trading produced revenue of GBP 4.6 million, against GBP 1 million in Q1 2009, and a pre-tax profit of GBP 370 000 versus a previous loss of GBP 450 000.
Cash balance at 31 December was GBP 2.3 million, slightly down on the GBP 2.7 million a year ago.
Media Corp management claimed that the figures demonstrate a material turnaround, driven by the recent acquisition of online poker and casino business Purple Lounge (see previous InfoPowa report) and a strong performance from Eyeconomy, the group's advertising network.
It is expected that revenue will continue to grow as Purple Lounge is fully integrated, benefiting from cost savings.
The group has also benefited from lifting on October last year of a Google penalty that had hurt its rankings in internet search results.