REG - Webis Holdings PLC - Trading Update <Origin Href="QuoteRef">WEBH.L</Origin>

Webis HoldingsAnnouncement

06/09/2014 20:35

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RNS Number : 2922N
Webis Holdings PLC
25 July 2014 
 
For immediate release                                                         
             25 July 2014 
 
WEBIS HOLDINGS PLC

("Webis" or "the Group")

Trading Update 
 
The board of Webis, the Group specialising in the provision of sports betting,
pool wagering and the operators of Cal Expo, the Californian harness track,
provides the following trading update for its subsidiaries betinternet.com
(IOM) Limited ("betinternet") and WatchandWager.com Limited ("WatchandWager")
for the financial year ended 31 May 2014. 
 
WatchandWager, the Group's pool-wagering operation, experienced good turnover
growth for the full year, boosted by new player activity into the Hong Kong
Jockey Club and Swedish pools. Both these outlets provide us with a
competitive first-mover advantage over other international operators and are
part of our growth strategy to secure further global licences and agreements.
Following these successes, the board has agreed to further investment in the
pool wagering division, concentrating on recruiting additional staff and
further improvements to the watchandwager.com platform. The board is confident
that this additional investment expense will translate into enhanced
profitability in the near term, justifying the commitment to compliant
operations in regulated jurisdictions. 
 
Cal Expo, the Sacramento based racetrack operation, adjusted the meeting
schedules to achieve the best return for all stakeholders and, by keeping a
very close control of the costs, helped to bring profitability to this part of
the Group, despite a reduction in turnover for the full racing season. The
racetrack has continued to offer meaningful leverage in developing the
pool-wagering and wider business, with WatchandWager and partner racetrack
groups now actively involved in discussions on legislative change within
online gaming in California. 
 
The Group's sportsbook operation, betinternet, saw turnover continue at a
similar level to the previous year, although we experienced some external
challenges in the second half which resulted in a lower overall full-year
margin than anticipated. The changing government perceptions towards online
gaming in Singapore, one of our main Asian markets, meant we were obliged to
curtail some of our casino and gaming activity from February. A reduction in
card authorisations from Singapore and some unfavourable football results in
the latter part of the European football season also had an impact on the
overall gross margin achieved. 
 
The board continues to monitor the possibility for regulatory changes in
Singapore and our advisors remain close to the review process. There has been
no official notification of the possible extent of any changes or any
associated timeline. Notwithstanding, we have reduced the sportsbook's
exposure to this jurisdiction, as we have been able to attract a greater
proportion of sports betting activity from other regions. In particular, In
Play Tennis, where betinternet offers customers a unique product and pricing
has shown significant growth. 
 
Post Year 
 
WatchandWager now has full access to all of the major US racetrack pools,
following the recently announced agreement with the New York Racing
Association. This contract signing was the trigger for a further increase in a
variety of targeted marketing activity for the watchandwager.com website. This
marketing activity commenced in July and is budgeted to increase in the period
up to the Breeders' Cup in early November. 
 
WatchandWager expects to renew the California Horse Racing Board racing
licence for Cal Expo in August and restart racing in early October. Following
consultation with US media groups, Cal Expo will be applying to switch from a
Friday and Saturday schedule to race on Saturday and Sunday evenings.
WatchandWager will also be increasing the prize money incentive scheme for the
upcoming season. These initiatives are designed to promote strong horse
numbers throughout the season and encourage greater exposure of races on
television. 
 
The board has committed to applying for a UK licence on behalf of Webis under
the recently introduced legislation by the UK government. Webis' position as
an existing licence holder in the Isle of Man gives it an option to apply for
a 'continuation licence' under this legislation, which is designed to offer a
continuity of business for UK resident customers during the licence
application process. 
 
Results during the recent football World Cup tournament in Brazil were
generally favourable for betinternet which achieved an encouraging margin. 
 
The board is also considering restating its reporting currency to United
States dollars to more accurately reflect our currency exposure. 
 
The board remains confident that the strategies for all areas of the Group's
activities are correctly aligned to ensure the best prospects for future
growth. 
 
 *** ENDS *** For further information, please contact: Webis Holdings plc  
 Garry Knowles, Managing Director                                          +44 (0) 1624 652590   
 Beaumont Cornish Limited                                                  
 Roland Cornish / Felicity Geidt                                           +44 (0) 20 7628 3396  
                                                                                                 
 Britton Financial PR                                                                            
 Tim Blackstone                                                            +44 (0) 7957 140416   
 
 
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