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News > Casino News Archive > ep 2006 > Online casino shows surprisingly low interim results |
4 Sep 2006
A Gibralter based online casino, sportsbook and poker operator reported surprisingly low interim results from recent months. The FIFA World cup may have been the reason for the poor results showing in more than one online casino, but recovery is still very slow. In spite of the 60% increase in the number of active players, the average value of each player has declined. The concern is due to a softer performance than what was expected while not meeting sportsbook expectations following the acquisition of Bet Direct early in June this year, producing a 9.8 percent gross win margin during the FIFA world cup.
Poker room operations show substantial growth with revenue more than doubling and active online casino players tripling in numbers. Competitors continuously come with new and aggressive methods and tactics to stay ahead in the online casino industry. The Football World cup in mid 2006 made for another obstacle lowering the numbers as gamblers attention was taken elsewhere. However, the online casino industry makes an effort to use the sports events as an additional avenue for targeting online casino players.
Trading in the second half of the year is expected to recover with the company's new acquisition. A Stand still approach is not what online casino is about and the company attempts to significantly enhance the scale and diversity of the business. All said, the online casino did in fact manage to turn a profit making GBP 5 million of the total GBP6.2 with profit before tax for casino and poker operations reaching GBP 1.1 million.
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