Trading Update & Proposed Red

RNS Number : 0734Y

Gaming VC Holdings S.A.

27 August 2009

 



Press Release

27 August 2009

Gaming VC Holdings S.A.

('Gaming VC' or 'the Company')

Trading update

Proposed Redomiciliation from Luxembourg to the Isle of Man

Gaming VC Holdings S.A. (AIM:GVC), a leading European online gaming company, is pleased to give the following trading update for the six month period to 30 June 2009 and announces its intention to seek the formal approval of shareholders for a redomiciliation of the Company from Luxembourg to the Isle of Man (the 'Redomiciliation'). 

Trading Update

Trading for the six months to 30 June 2009 has been in line with the Board's expectations with increases in both gaming and sportsbook revenue.

As reported in the results for the year ended 31 December 2008, and in line with other quoted internet gaming groups, Gaming VC experienced a decline in volumes during Q4 2008 as a result of the global economic downturn. Although trading conditions remain challenging, the Company has seen some recovery in volumes. Unaudited revenues for the six months to 30 June 2009 were €26.5 million versus €24.0 million in H2 2008 and €26.1 million in H1 2008.  

The following table illustrates the mix in volumes between sportsbook and gaming:

In €m	H1 2008	H2 2008	H1 2009
Sports	3.1	3.2	4.9
Gaming	21.9	22.9	21.6
Total	24.0	26.1	26.5

In Gaming VC's mainstream casino offering, casino-club.com, volumes have been affected by global economic conditions with the Company's 'high-roller' customers spending less rather than a decline in overall active numbers. This continues to be monitored and managed closely, but remains a highly profitable business.

Sportsbook revenues continue to grow and the sportsbook margin was 16.3% in H1 2009 compared to 14.7% in H1 2008 and 11.9% in H2 2008. In line with the Company's peer group, margins were affected by predictable football results in the closing weeks of the season but the Board is pleased with the overall sports margin and turnover achieved in the first six months.

Trading in the second half of 2009 remains in line with management expectations over all areas of the business. The Company's recent South American acquisition is performing and growing well. 

Trading conditions for the rest of 2009 are expected to remain challenging but the Board remains cautiously confident for the second half of the year.

At 30 June 2009, the Company had net cash balances of €20.8 million. The initial purchase consideration for Betboo was US$4 million (€3 million), paid on 2 July 2009. The net cash balances at 14 August 2009 were €19.1 million which is equivalent to €0.61 and £0.50 pence per share. 

The interim results for the six months to 30 June 2009 are expected to be published in late September.

PROPOSED REDOMICILIATION

Gaming VC also announces today its intention to seek the formal approval of shareholders for a redomiciliation of the Company from Luxembourg to the Isle of Man. 

The principal benefits of the Redomiciliation include:

	The Company's shares will become CREST eligible, therefore avoiding the need for Depositary Receipts;
	The Company will become subject to the City Code on Takeovers and Mergers;
	Dividends will be paid without the 15% withholding tax deduction applicable in Luxembourg; and
	The Isle of Man, as a 'white-listed' jurisdiction, is familiar with internet gaming companies.

Subject to securing the requisite approvals, the Company intends to pursue a 'fast-track' redomiciliation process under which it will retain the same 'legal personality' albeit with a different registration number and different country of incorporation. Under this route, there should be no change in shareholdings, no change in the Company's assets or liabilities and no tax event for shareholders.

The Redomiciliation will be subject, among other things, to securing various regulatory and fiscal consents in both Luxembourg and the Isle of Man and to the unanimous approval of shareholders voting at a General Meeting. Full details will be set out in a Circular which is expected to be dispatched to Shareholders within the next few weeks.

 - Ends -

For further information:

Gaming VC Holdings S.A.
Kenneth Alexander, Chief Executive Officer	Tel: [phone]
Richard Cooper, Chief Financial Officer	www.gamingvc.com

Arbuthnot Securities Limited	Tel: [phone]
James Steel / Edward Gay, Corporate Finance	www.arbuthnotsecurities.co.uk

Media enquiries:

Abchurch
Chris Lane / Stephanie Cuthbert / Nick Probert	Tel: [phone]
[e-mail]	www.abchurch-group.com

  About GVC

Gaming VC is a leading European online gaming company. The Group is headquartered in Luxembourg and is licensed in Malta, Italy and the Netherlands Antilles.  

Gaming VC's management team has a wealth of experience in the gaming industry and has a significant track record in successfully identifying and penetrating new markets. The Company is focused on delivering an innovative product offering and is dedicated to providing sophisticated Customer Relationship Management (CRM) to ensure high levels of customer satisfaction.  

Gaming VC uses Internet marketing and affiliate networks for customer acquisition and customer retention purposes.

In December 2004, Gaming VC's shares were admitted to the AIM market of the London Stock Exchange. Gaming VC has not and has never transacted wagering activity by players in the US.  

Further information on the Company is available at www.gamingvc.com.  

 

END

 

 

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