Tough Times For VC Gaming
Published: Tuesday, April 17, 2007 Online-Casinos.com
TOUGH TIMES FOR VC GAMING
Official German attitudes towards online gambling make diversification necessary
Online gambling AIM listed company VC Gaming has released its latest full year results with pre-tax losses of Euro 28.8 million showing just how tough the market has become in countries like Germany, where the firm has been mainly focused. Over the same period last year a profit of Euro 12.8 million was achieved.
Newly appointed CEO Kenny Alexander, in the hot seat since 1 March 2007, says the company's diversification away from its core German market will be a key objective in the year ahead after its full-year results showed the impact of goodwill impairment due to the continued unclear regulatory situation in Germany.
After the one-off charge, Gaming VC saw pre-tax losses of Euro 28.8 million (GBP 19.5 million) Turnover rose slightly to Euro 40 million while operating profit before exceptional items and share option charges was also down slightly at Euro 13.5 million from Euro 13.9 million.
Product diversification is another objective for the year ahead, and there are plans to acquire an Italian sportsbook license, hopefully within the next quarter. Other additions to product will include both bingo and tournament poker. The company said it is working on a change in marketing channels from mostly direct mail marketing in Germany to online marketing.
Trading in the first quarter of the new year gave a more positive picture, with daily revenue up 21 percent on the previous quarter and 12 percent up on the same period last year at Euro 129 000.
The company's operational units comprise Casino Club.com and Casino Club Poker.com.
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