betinternet.com PLC
07 June 2007
FOR IMMEDIATE RELEASE
7 June 2007
BETINTERNET.COM PLC
('the Company' or 'betinternet.com')
Trading Update
The Board of betinternet.com plc ('betinternet.com'), the global on-line gaming
group, is pleased to provide a trading update in relation to the Company's
unaudited results for its financial year ended 27 May 2007.
The Company has achieved profitability at an EBITDA level for the full year.
This represents an overall improvement in performance and shows a considerable
advance on the previous year.
The Company's pari-mutuel operation, European Wagering Services (EWS) has
continued to progress well and has a growing customer base utilising various
technologies to place wagers through its Isle of Man based hub, directly into
race-track betting pools. The withdrawal of Neteller's services from the United
States gaming market had an adverse impact on the operation in January and
February of this year, whilst alternative payment solutions were sought. In
light of this, the board is keen to discover the United States Treasury's
proposals for the enforcement of the United States Unlawful Internet Gaming
Enforcement Act (UIGEA) and how it intends to protect legal operations, such as
EWS, from being disadvantaged.
The sportsbook continues to benefit from the new website portal, launched in
June 2006, which has been regularly updated to reflect the specific requirements
of betinternet's customer base, the majority of which remains based in the Far
East. As a result of a number of enhancements to internal management systems,
the amount of football leagues and markets that are offered, especially Asian
Handicaps, has greatly increased and the Company's traders are now considerably
better-placed to manage the risk of this increased offering.
The two casinos and fixed-odds games remain very popular and account for just
over half of the sportsbook's overall Gross Margin.
The second half of the year has presented some challenges as the Company has
dealt with issues following the introduction of the UIGEA. Although the board
believes that the Company remains fully compliant with this Act, the banks and
other service providers have taken a risk-averse stance and this has had a
greater effect on our business than previously anticipated.
As part of the sportsbook enhancement process and to widen its appeal within the
British Isles, the Company intends to offer betting on UK horseracing within the
next two months. Initially, this will be a soft-launch, but it is expected that
a full service will be offered shortly thereafter and that marketing activity
will increase at this time.
The Company intends to further develop its pari-mutuel website,
www.link2bet.com, to provide for a much improved user experience with enhanced
features to take advantage of the restrictions on fixed-odds betting brought
about by the UIGEA. This will be in addition to seeking more content for both
thoroughbred and greyhound racing.
Due to legislative changes in the proposed launch country (Russia), we have been
unable to advance our white-label service, although this offering is now fully
developed and we will continue to seek appropriate business partners.
As previously announced, the Company will continue to seek complementary
acquisitions and is currently pursuing potential opportunities.
Managing Director, Garry Knowles, said 'I am pleased that we have been able to
achieve an EBITDA profit for the full year, despite it being a challenging time
for the gaming industry. We continue to make good progress and I fully expect
that the changes that the Company has introduced during this period, combined
with the continual customer-focused development of both the sportsbook and
pari-mutuel websites, will see the Company make further improvement in the
forthcoming year.'
For further information:
betinternet.com Plc
Garry Knowles, Managing Director Telephone: 01624 698141
Evolution Securities Plc
Joanne Lake Telephone: 0113 243 1619
This information is provided by RNS
The company news service from the London Stock Exchange