Denham Eke, non-executive chairman of Webis Holdings, has cited the increased cost of “remaining competitive” as one of the key reasons behind a year-on-year drop in profit during the 12 months through to May 31.
The company, which owns US-based betting company WatchandWager, posted a loss of just under $2 million (€1.9 million) in the full year, down from a profit of $513,000 in the previous 12-month period.
Losses from continuing operations came in at $1.6 million, compared to a profit of $246,000 in the previous year, while losses from discontinued operations totalled $432,000.
Eke highlighted the increase cost of operations as one of the key reasons behind the drop in profit, with the cost of sales jumping from $114.4 million last year to $150 million in the most recent 12-month period.
Operating costs also increased from $4.7 million to $5 million, while Webis noted an additional $415,000 in losses from other areas.
However, the company was able to report a significant increase in turnover, with this result up from $119 million last year to $154.4 million.
Reflecting on the results, Eke said the Webis board remain upbeat over its long-term outlook, stating that the closure of the firm’s betinternet.com operation will enable it to fully focus on its WatchandWager business moving forward.
“This closure and subsequent restructuring has had a significant and immediate short-term impact on the group’s profitability, but the board remain confident that the long-term outlook is positive,” Eke said.
“The group is now able to firmly focus, without distraction, on the US-based pari-mutuel wagering business – WatchandWager.com, centred in San Francisco with an operations hub in Lexington, and the race track management business – Cal Expo, based in Sacramento.
“I am pleased, therefore, to report that against this background, WatchandWager continues to make good strategic progress in its determination to return to profitability, particularly in increasing the availability of premium global pari-mutuel wagering content, adding to its suite of regulated licences, including access to the Hong Kong Jockey Club pools.”
source : www.igamingbusiness.com