The online gaming software developer and sportsbook operator released an update on its full-year results, which include three months of trading from Sportsbetting.com group acquisition and an update on the consideration payable relating to that acquisition.
The company\’s software licensing business has continued to experience strong growth in licensee wagering volume throughout the fourth quarter of 2005 and the management expects operating profit before goodwill amortisation to be approximately $6.5m for the twelve months ended 31 December 2005.
Subsequent to the company\’s acquisition of the Sportsbetting.com group effective 1 October 2005, the business has maintained strong performance in respect of customer sign-ups, deposits, customer activity levels and wagering volumes, all of which have exceeded management\’s expectations.
However, the sports betting win margins in the fourth quarter, particularly with respect to American NFL results, have been well below industry trends and well below margins that the Sportsbetting.com group has experienced in comparative prior periods.
The group reported a profit before tax of approximately $13.8 million.
As the terms of the acquisition for the Sportsbetting.com group provided that the total consideration was to be equal to the profit before tax multiplied by six times, the amount payable to the vendors is expected to be reduced from the maximum consideration payable of $96.0 million to approximately $82.8 million.
“We are delighted to be reporting on a highly successful year of change and rapid growth for World Gaming. Our admission to AIM and acquisition of the Sportsbetting.com group, our largest licensee, have put the Company in a very strong trading position,” said Chief Executive Daniel Moran.
The company\’s directors said they look to the future with confidence and despite a short-term abnormality in American NFL has produced a lower than anticipated sports margin in the fourth quarter, “strong underlying performance indicators remain and the start of 2006 has seen a return to historic margin levels.”
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