Webis losses widen amid divisional difficulties

24th Feb 2023 14:29

(Sharecast News) - Gambling operator Webis reported a 4% fall in amounts wagered to $38.2m in its interim report on Friday.

The AIM-traded firm said turnover for the six months ended 31 December totalled $6.23m, down from $6.8m year-on-year, resulting in a gross profit of $1.99m, compared to $2.18m a year earlier.

That resulted in a loss of $0.33m for the period, widening from the $0.07m loss it recorded in the first half of the 2022 financial year.

Operationally, Webis said its business-to-consumer (B2C) division performed well, contributing 75% of gross margin during the period.

It said it was planning to double its player numbers on the platform by the end of 2024, focusing on the growth of the B2C sector.

The business-to-business (B2B) division, meanwhile, remained "important", but the company said there were challenges in maximising margins in the sector.

Its board said the market was getting tougher, with big players dominating and certain operators willing to take wagers at an almost-zero margin.

"This is not now a model that we are particularly interested in for obvious reasons," the board said in its statement.

Despite that, Webis said it would not abandon the B2B division, and would continue to conduct business in a "legal, licensed, and regulated" manner.

"Our principal subsidiary, WatchandWager, had a mixed start to the first six months of the financial year," said non-executive chairman Denham Eke.

"Trading was strong during the summer months, where we enjoyed excellent commission levels from Saratoga, New York and Del Mar, California."

Eke said that on a less positive note, trading was difficult during the months of September, October, and November, largely due to "exceptionally adverse" weather conditions.

"I remain extremely confident as we approach the spring months that trading will improve in line with expectations, especially as we roll out our new business-to-customer marketing strategy."

At 1311 GMT, shares in Webis Holdings were down 3.72% at 2.07p.

Reporting by Josh White for Sharecast.com.