CasinoClub.com, Betaland.com and Betboo.com are performing ‘in line with expectations’ while a new European sportsbook is expected for the fourth quarter.
Wednesday 28th July 2010
Online casino and sportsbook operator Gaming VC Holdings SA has released a trading update for the first six months of 2010 showing that it expects to report an eight percent year-on-year increase in net gaming revenues to €28.5 million.
The Isle Of Man-based firm stated that it would release its interim accounts on September 28 while revealing that trading has been ‘in line with expectations’ helped by a four percent half-on-half rise in net gaming revenues.
Over the first six months of 2010, Gaming VC announced that it had ceased operating its loss-making Spain-focused online bingo brand, Winzingo, and now has three core brands in CasinoClub.com, Betaland.com and Betboo.com.
Gaming VC reported that ‘fierce competition together with a weak economic climate in Europe’ had led to a further decline in the core German-facing and roulette-dominated casino business catered to by CasinoClub.com. The firm stated that revenues per day for the domain fell to €75,700 from €83,200 for the first half of last year.
“As previously announced, the group has invested in both retention and acquisition marketing to defend its highly profitable CasinoClub.com business,” read the update.
“Around €2.8 million was incurred in the first half of 2010 compared to around €1.5 million in the first half of 2009. The inevitable consequence of this is that contribution margin from CasinoClub.com is expected to be closer to 60 percent rather than 70percent in the first half of 2009.”
However, Gaming VC stated that the number of average daily customers and the number of monthly active customers grew over both halves of 2009 even though the average expenditure continues to decrease.
With Betaland.com, Gaming VC reported that it saw an 18 percent year-on-year increase in the number of bets to 2.7 million alongside a ten percent increase over the same period in 2009 in the number of customers to an average of 9,700 per month although the average size of wager fell from €13.70 to €11.40.
New site Betboo.com saw ‘material growth’ during its first year of operation with Gaming VC stating that it ‘remains confident about its long-term prospects in the rapidly developing South American economy’.
“The sportsbook has seen material growth and a strengthening of the trading team is expected to result in improved margins,” read the update.
“Gaming revenues are largely bingo-driven and have increased from around €10,000 per day in January of 2010 to around €20.000 per day in the first 19 days of July while the average over the six-month period was €13,000.
“Betboo.com is anticipated to be the brand to be used for the launch of the new European sportsbook, which is expected to be live early in the fourth quarter of 2010.”
