Gaming VC Reports 23 Percent Rise in H1 Profits
September 19, 2008 (InfoPowa News) — European operator Gaming VC has reported growth in EBITDA of 7 percent to Euro 10.6 million on last year's €10 million for the six month period end in June, with pre-tax profits rising 23 percent to €10.5 million on last year's €8.5 million.
Group revenue was up 20 percent to €26.3 million, and operating profit also rose 19 percent to €10.6 million. Gross profits rose 30 percent to €21 million during the period, compared with €16.3 million last year.
Kenny Alexander, chief executive of Gaming VC, said that Gaming VC's core German poker and casino market had performed well and had been "resilient with volumes maintained due to the group's online affiliate marketing and continuous focus on customer relationship management. Our CRM hub is now fully operational and all customer service and contact is being done in-house, improving the group's overall performance by reducing attrition levels and maintaining lifetime values."
His report added that the German Interstate Treaty that was passed in January 2008 banning Internet gambling in the country was in contravention of EU law.
On an operational front, the group will launch at least two new casino brands targeting customers outside Germany, Alexander revealed. The company will also be launching its sportsbook in additional languages, with four new Eastern European partnership agreements signed.
Gaming VC's Italian sportsbook business grew strongly, generating €3.2 million of gross margin from a handle of €22.5 million, representing a margin of 14.2 percent, during the first six months. TV and press marketing campaigns will be launched in the second half of the year to build on the Italian sportsbook's good performance. Its Spanish bingo site winzingo.com is now live and an increased marketing drive will take place in the second half of the year.