Daniel Moran, chief executive of World Gaming, said he is “delighted” by the company’s first-quarter results, which saw gross profits jump 40% after the full integration of sportsbetting.com.
As well as profits, growth of 29% was reported in new customers, compared to the same period in 2005. Pre-tax profits were US$5.4m compared with US$0.8m for the same period last year.
Moran said: “We are delighted with the results. Around 40% growth in any industry is fantastic. The sports margins were very good, and we have recovered from Q4 2005. It has exceeded expectations. We have been good at finding the bargains and we have looked into our various mechanisms.”
Player growth was put down to a combination of factors, with Moran saying the brand is becoming better known.
With regards to player crossover, which can sometimes be a problematic area, he added: “We concentrate on our sports customers, but I think there are two reasons fore the high rate of cross selling. One is the popularity between sports and blackjack. We see similar crossover and success rates as PartyGaming, which has done well in this area, likewise, with poker and sports. It attracts the same type of punter and if they can do it all from the same place then they will.
Moran said the focus in the first quarter was the integration of new businesses.
World Gaming has signed two acquisitions this quarter, and is in the process of setting up their websites in time for the NFL season.
As far as future acquisitions, Moran said: “We recognise the value of diversification of risk, in looking at a non-US facing acquisition.”
“The only thing we don’t own fully is poker. We would be far better off owning it than simply paying out for the product.”
Source : egr magazine
