European internet gaming firm plans South American move
Posted by Epiphany Solutions on 27 Apr 2009 at 14:04
An online gaming firm known for its popularity with German gamers looks set to branch out and head to South America as part of expansion plans.
Gaming VC, based in Luxembourg but boasting a core German market, has said it is negotiating a deal to buy an online sports and gaming business in South America, according to the Financial Times.
The purchase is expected to target Brazil, with the company already building popularity in Eastern Europe and Italy.
Gaming VC, which is Aim-listed, has close to 60,000 customers through its Casino Club brand, and over half of its revenue is now coming from places other than Germany, the Financial Times reports.
Quoted by the newspaper, Kenneth Alexander, the firm's chief executive, said GVC "continues to seek acquisition opportunities in selected additional markets".
The paper also reports the company's fortunes are on the up, with volumes getting better in the first three months of 2009 after a slip at the end of 2008.
Gaming revenue is also on the up, rising 12 per cent in the first quarter of 2008 and reaching 50.1 million Euros for the year, more than 17 per cent better than 2007. This is slightly better than executives had expected, according to the Times.
Pre-tax profit for the year is also up slightly, and basic earnings per share to 0.53 Euros after a near doubling of marketing and affiliate costs.
Other figures show staff costs went up 40 per cent, which followed the creation of an in-house customer relations unit.
The Financial Times also reported a final dividend of 0.20 Euros per share for a total dividend of 0.40 Euros per share, and the cash balance is up from12.6 million Euros to 17.3 million Euros.
On Tuesday shares fell almost 10 per cent, to187 1/2p, which experts put down to profit taking, according to the Times, with Robert Sanders of house broker Arbuthnot quoted as saying: "The figures are very robust and the share price has had a good run over the last month or so."
