GAMING VC PLANNING A MOVE TO ISLE OF MAN
JURISDICTION
28 August 2009
Trading update shows re-domiciliation from
Luxembourg to IOM is in train
Online betting group Gaming VC Holdings S.A. has
announced its intention to seek the formal approval of
shareholders for a redomiciliation of the company from
Luxembourg to the Isle of Man.
The disclosure
came during a trading update on the first six months of
2009 showing that Gaming VC experienced a decline in
volumes during Q4 2008 as a result of the global
economic downturn.
Management reported that
although trading conditions remain challenging, the
company has seen some recovery in volumes.
Unaudited revenues for the six months to 30 June 2009
were Euro 26.5 million versus Euro 24 million in H2 2008
and Euro 26.1 million in H1 2008.
H1 2009
sportsbook volumes are up at Euro 4.9 million (H1 2008:
Euro 3.1 million), whilst gaming volumes have declined
to Euro 21.6 million (H1 2008: Euro 21.9 million)
Management reported that at Gaming VC's mainstream
casino offering, Casino-club.com, volumes have been
affected by global economic conditions with
"high-roller" customers spending less rather than a
decline in overall active numbers.
Sportsbook
revenues continued to grow and the sportsbook margin was
16.3 percent in H1 2009 compared to 14.7 percent in H1
2008. Margins were affected by predictable football
results in the closing weeks of the season but the
directors are pleased with the overall sports margin and
turnover achieved in the first six months.
"Trading in the second half of 2009 remains in line with
management expectations over all areas of the business,"
the statement reads. "The company's recent South
American acquisition is performing and growing well.
"Trading conditions for the rest of 2009 are
expected to remain challenging but the Board remains
cautiously confident for the second half of the year."
At 30 June 2009, the Gaming VC had net cash balances
of Euro 20.8 million. The initial purchase consideration
for Betboo (see previous InfoPowa report) was US$4
million (Euro 3 million), paid on 2 July 2009. The net
cash balances at 14 August 2009 were Euro 19.1 million.
Regarding its move to the Isle of Man, Management
said the principal benefits include:
* The
Company's shares will become CREST eligible, therefore
avoiding the need for Depositary Receipts;
* The
Company will become subject to the City Code on
Takeovers and Mergers;
* Dividends will be paid
without the 15 percent withholding tax deduction
applicable in Luxembourg; and
* The Isle of Man,
as a "white-listed" jurisdiction, is familiar with
internet gaming companies.
Online Casino News Courtesy of
Infopowa
More news here.
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