PRESS RELEASE
Trading Update
Update on re-domiciliation process
17 December 2009
Gaming VC Holdings S.A. (AIM:GVC), a leading European online gaming company, today announces a trading update mid-way through the final month of the trading year.
Excluding revenues from Betboo, the recently acquired South American online gaming business (for which revenues are shown separately below), the average daily revenues in Q4-09 have increased by 30% from the same period last year to €166k (Q4-08 €128k).
Gaming revenues in Q4-09 have been averaging €124k (Q4-08 €107k) while Sports revenues have been averaging €42k (Q4-08 €21k). Sports margins in Q4-09 have been averaging 29.5% (Q4-08 11.1%)
The Sports margins derive mainly from the Group's brand "betaland" licensed in Malta. Gaming VC is expected to complete the sale "betpro", it's brand licensed in Italy, to a third party for a nominal sum imminently. The effective date of disposal is 31 August 2009 and hence the figures in Q4-09 exclude the results of that business. The Net Gaming Revenues ("NGR") from Betpro for the 8 month period to 31 August 2009 amounted to €0.5 million, less than 2% of the Group's total NGR over the same period.
NGR, excluding Betboo, for the 350 day period from 1 January 2009 to 15 December 2009 have been €50 million, compared to €48 million for the 350 days to 15 December 2008, and €50.1 million for the 12 months ended 31 December 2008. Additionally, revenues from the newly acquired Betboo business have been averaging BRL 31k (€12k) per day in the period since acquisition (2 July 2009).
The Group had €18.3 million in cash at bank at close of business on Friday 11 December. Gaming VC has already paid €12.5 million in dividends during 2009.
A summary of the average daily revenues per quarter, excluding Betboo since 1 January 2008 are shown below.
| 70 days to 15 Dec 09 |
||||||||
| Q1-08 | Q2-08 | Q3-08 | Q4-08 | Q1-09 | Q2-09 | Q3-09 | Q4-09* | |
| Sports | 19 | 16 | 12 | 21 | 41 | 13 | 15 | 42 |
| Gaming | 128 | 124 | 120 | 107 | 125 | 114 | 107 | 124 |
| Average revenue per day | 146 | 141 | 132 | 128 | 165 | 128 | 121 | 166 |
| *year-end is 31 December 2009 | ||||||||
Update on re-domiciliation process
On 27 August 2009 the Group announced its intention to seek shareholder approval for the redomiciliation from Luxembourg.
A full circular on this subject is expected to be sent to shareholders by mid-February 2010. For legal reasons, the restructuring is slightly different to that originally envisaged, in that it is now expected to involve the hive-down of the Luxembourg holding company's assets and liabilities to a newly incorporated Isle of Man subsidiary followed by a liquidation of the Luxembourg holding company and in specie distribution of the shares of the Isle of Man company to shareholders. This may give rise to a taxable event for certain shareholders – further details will be set out in the circular and shareholders should take their own advice on any taxation implications for them. The Directors continue to believe that redomiciliation would be in the interests of the Company with benefits expected to include:
- The absence of a 15% Luxembourg withholding tax on dividends
- The application of the Takeover Code to the new Isle of Man holding company
- The eligibility of the shares in the new Isle of Man holding company for CREST
- More modern corporate law
- The ability to facilitate special dividends or share buy-backs
The Group expects to be able to update the market on the trading performance for the full year to 31 December 2009 and the outlook for 2010 in the fourth week of January 2010.
For further information:
| Gaming VC Holdings S.A. | |
| Kenneth Alexander, Chief Executive | Tel: +44 (0) 20 7398 7715 |
| Richard Cooper, Group Finance Director | www.gamingvc.com |
| Arbuthnot Securities Limited | Tel: +44 (0) 20 7012 2000 |
| James Steel / Edward Gay, Corporate Finance | www.arbuthnotsecurities.co.uk |
Media enquiries:
| Abchurch | |
| Henry Harrison-Topham / Nick Probert | Tel: +44 (0) 20 7398 7715 |
| nick.probert@abchurch-group.com | 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 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 Group is available at www.gamingvc.com.