Remarkable Profit Turnaround For Gaming Vc

REMARKABLE PROFIT TURNAROUND FOR GAMING VC
Online gambling company reports Euro 16 million pre-tax profit after last year’s Euro 29 million loss

The Gaming VC group, which is currently the target of an unknown company that has shown an interest in acquiring it (see previous InfoPowa report) has published 2007 full year results that show a startling improvement over 2006. The company is reporting 2007 pre-tax profits of Euro 16 million after a loss in full year 2006 of Euro 29 million, mainly due to one-off impairment charges.

Gross profits for the company, which owns the Casino Club online casino and poker operations together with Betaland and Poker Kings saw a rise of 9.5 percent to Euro 32.2 million (2006: Euro 29.4 million) on net gaming revenues of Euro 42.7 million, and operating profit rose 28 percent to Euro 17.3 million

Casino net revenues fell to Euro 38.1 million (2006: Euro 38.3 million) whilst online poker revenues rose markedly to Euro 3.4 million from Euro 2.2 million in 2006. Sports betting net revenues of Euro 1.1 million were recorded.

Concerns about the group’s German activities in a tough legal environment will be assuaged by the news that Gaming VC has reduced its exposure over the past 12 months by diversifying into other territories such has Spain and Italy.

Gaming VC re-negotiated its poker software contract with Boss Media to allow it to use other software providers, enabling it to be more competitive and gain market share as it launches new poker products later this (2008) year. The company acquired a Malta sportsbook license and an Italian sports betting licence in the first quarter of this year and recently launched a Spanish-facing bingo site called Winzingo.es.