Information from various media sources, including news giant Reuters, and from industry organizations such as the Off Shore Gaming Association, has confirmed that a Europe-based online gambling company, Gaming VC Holdings SA, is reporting a drop in pre-tax profits for the fiscal year. To balance this news, the company is projecting increased revenue for 2010.
Gaming VC is registered to do business in Luxembourg. The company reports plans to expand in South America, especially in online sports betting. Company executives emphasize that the expectation of higher revenues in the current year are realistic, considering that the World Cup will bring the industry additional revenue.
But even though the pre-tax profit level is down for the past year, the company is apparently “comfortable” with the estimate of 8.4 million pounds from revenues of 60 million Euros. The company plans to reduce spending in the area of marketing. This reduction could amount to as much as 15 percent to 20 percent, according to information from Gaming VC.
Shareholders should be happy with management decisions, considering that the company has announced it will continue to pay dividends with a huge portion of net cash. The news of slightly lower profits affected the share price of Gaming VC, dropping the price more than 10 percent.
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