Webis Holdings Sees FY10 'Significantly' Below FY09 >WEB.LN

13th Jul 2010 07:34

LONDON (Dow Jones)--Webis Holdings PLC (WEB.LN), the global on-line gaming group, said Tuesday trading for the year ended May 31 will be significantly below the directors' previous expectations, despite betinternet achieving a significantly higher than expected turnover for the World Cup with very favorable margins, particularly during the early group stages. MAIN FACTS: -betinternet performance since the year-end, combined with continued strong trading from European Wagering Services, or EWS, has meant that the overall Group results during the early period of the new financial year have had a positive benefit on the Group's cash position. -EWS is actively pursuing acquisition and licensing opportunities in the U.S. to facilitate an increase in the level of horse racing content and, ultimately, to establish a physical presence in the U.S. pari-mutuel betting market. -Following conclusion of the World Cup, the board is presently reviewing its strategy for the sportsbook as a whole, taking into account factors such as the impact of increased competition and regulation within certain of its global markets. -EWS achieved a further increase in turnover, although increased competition in B2B business has led to a slight reduction in the overall margin percentage; Largest area of growth came from the further development of the website, www.link2 billionet.com, and the recruitment of new lower volume, higher margin customers. -Directors expect a similar gross profit for EWS to the previous year. -betinternet.com, experienced a significant fall in turnover during the year primarily as a result of the previously notified reduction in casino play, where the 'high-roller' business that the operation had previously benefited from dropped away. -The fixed-odds part of the sportsbook, although achieving an increase in turnover, was impacted by unfavorable results throughout the football season, particularly in the early part as previously notified, as well as a challenging trading environment for horse racing which contributed to a reduced gross margin. -Sportsbook recorded a substantial operating loss for the financial year. -Shares closed Monday at 1.5 pence valuing the company at GBP3.10 million. -By Ian Walker, Dow Jones Newswires; 44-20-7842-9296; [email protected] (END) Dow Jones Newswires July 13, 2010 02:34 ET (06:34 GMT)