02/22/2012 : REDBET EXPANSION EFFORTS PAY OFF
To reduce reliance on online poker following decline in contribution to revenues
Redbet Holding AB has released its full year 2011 financial results showing signs of recovery along with positive indicators pointing towards a return to profit.
Key Performance Indicators during the company's fourth quarter include:
– Operating revenues amounting to SEK 24.1 Million (Q4/2010: SEK 17.1), an increase of 41 percent.
– Operating profit amounted to SEK -1.2 Million (Q4/2010: SEK 0.8 million).
– Profit after tax was SEK -1.4 Million (Q4/2010: SEK 0.4 million).
– Player deposits amounted to SEK 95.7 million (Q4/2010: SEK 69.0 million), an increase of 39 percent
– The number of registered online gaming player accounts at quarter-end totalled 289 115 (Q3/2011: 155 127).
– The number of active player accounts amounted to 49 604 (Q3/2011: 15 624).
Full year key performance indicators include:
– Operating revenues amounted to SEK 77.8 million (2010: SEK 67.0 million).
– Operating profit amounted to SEK -3.5 million (2010: SEK -29.1 million).
– Profit after tax was SEK -4.5 million (2010: SEK -29.3 million).
– Earnings per share amounted to SEK -0.17 (2010: SEK -2.39).
– Player deposits amounted to SEK 315.5 million (2010: SEK 263.9 million).
– The Board will propose no 2011 dividends at its AGM.
– The Group's cash and cash equivalents net of customer funds at the end of the period amounted to SEK 13.6 million (2010: SEK 22.0 million).
– All operations in Malta i.e. Redbet, Whitebet, Heypoker, Gold Club Casino and Total Poker as well as Latvian business Optibet increased revenues.
Total revenues broken down into sector showed online poker and casino accounting for 35 percent each, while betting accounts for 30 percent. The company has reviewed its focus on poker following a decline from a 47.6 percent to a 34.5 percent contribution towards total revenue.
During its 2011 fiscal year, Redbet launched New Heypoker.com which was updated with a new casino offering from Net Entertainment as well as a new betting product from Redbet's own platform.
Wholly owned subsidiary Livonia Gaming Ltd (formerly Redbet Incentive AB) appointed a new board comprising Niklas Braathen, Claes Hallen and Michael Petterson who will increase focus on the Group's operations in the Baltics and Eastern Europe. Ownership of Redbet's Latvian operator SIA Optibet has moved from Redbet Holding AB to Livonia Gaming AB.
Key movements in the firm's executive included Claes Hallen appointed as acting Chairman of Redbet Holding AB last month. Andreas Helsing filled the position of chief financial officer of Redbet Holding AB and Marcel Asio as chief technology officer, both appointments effective earlier this month.
Jorgen Andersson, chief executive officer of Redbet Holding AB commented on the results:
"Looking back over the full year 2011 shows that the company's expansion efforts started to bear fruit. The Company has during 2011 increased investments in marketing, conducted a number of acquisitions, strong marketing and support organization, enhancing the online gaming sites and offerings.
“The Group's operations in Malta and Latvia both increased significantly their income, especially in the second half. Growth was driven by increased revenues in the casino and betting. Meanwhile, poker revenue remained largely unchanged in 2011 compared to last year, with acquisitions included.
"With stronger brands, and improved customer services, the company is well placed to show profitable growth in 2012."
The Group continues to actively search for acquisition opportunities in both new and existing markets furthering its focus on expansion.
In related news, Redbet Holding AB has advised receipt of a subpoena from Abba Tina Malta Ltd relating to a claim of approximately Euro 800 000 against Redbet Ltd., a former subsidiary that was sold in connection with the liquidation of its operations in England in May 2010. Redbet has denied responsibility for claims against the company and further information on the nature of the claim was undisclosed.