The results for the six months ended June 30 show a gross profit of €15.7 million, down 5% compared to the same period last year, on revenues of €21.2 million, in line with H1 2005 levels. The operating profit of €6.8 million was notably down from €11.2 million reported in the first half of 2005.
Commenting on the results, Chief Executive Steve Barlow said: “Performance in the first half of 2006 was strong, however, as we anticipated the months of July and August have showed some seasonal weakness. In addition, due to unforeseen direct mail disruptions, combined with an extremely hot summer and post World Cup weakness, our Casino business has also been further impacted. Hopes for a September recovery have not yet fully materialised and therefore we believe that the outcome of second half is likely to be affected.”
Elsewhere, Fairground Gaming Holdings, the online gaming investment holding company which purchased the Spin Palace group in June 2006 for $66.8m, announced a 27% increase up to $18.9m in pro-forma net gaming revenue. The company also said that it continues to be extremely active in identifying and evaluating suitable acquisition targets, despite most vendors hold on to unrealistic valuation expectations, considering the changing and unfavourable market conditions.
Commenting on developments, Chief Executive Evan Hoff said: “We continue to focus on our strategy of building a broad-based and diversified gaming portfolio and are proceeding cautiously in evaluating acquisition opportunities. In light of volatile conditions within the sector, the board has also placed great emphasis on understanding the risks faced by the industry and is implementing appropriate strategies to mitigate such risks.”
“The second half of the year will see a full contribution by The Spin Palace Group. Based on indications to date, we are satisfied with the current trading position of your company and expect trading to be in line with expectations for the full year.”
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