The Isle of Man-based bookmaker announced to have secured the necessary funding to underpin a “number of major strategic initiatives” through a placement from its major shareholder, Burnbrae Limited, for £1.6 million less costs associated with the issue.
Denham Eke, Betinternet Chairman, said that the strategic issues are proceeding according to plan and in line withthe company\’s anticipated timetable.
Specifically the new sportsbook platform which is being developed in partnership with IGW, a Florida based company with particular expertise in developing software for the US market, is on target to be functioning in advance of the 2006 Soccer World Cup Tournament.
Arrangements are also proceeding in parallel to launch the new software from servers in Curacao, allowing the online bookmaker to target the vast US market with a comprehensive sports, casino and games offering.
The fundraising will also provide resource for a targeted marketing campaign towards potential new players from the USA and the company\’s core markets in the Far East and Europe.
Anticipating the half-year results forecasted for early March, Betinternet said the activity in the sportsbook division mirrors the period to May 2005.
“Wagering on sporting events will be less than for the comparable period last year as it was felt imprudent to undertake significant marketing expenditure in advance of the new platform launch which I refer to above,” said Eke.
The company continues to be pleased with the turnover from the online casino and games, which at the end of November 2005 exceeded that from sports events.
European Wagering Services, the company\’s pari mutuel business, has made steady progress in the current period. However, following the well documented issues it faced last year which resulted in the company\’s decision to cease offering incentives to certain high wagering US punters, the turnover from this activity will be significantly less than in the corresponding period last year. Nevertheless by concentrating on higher margin opportunities EWS is expected to make a modest contribution before interest and depreciation.
“The Board is however looking towards the future with considerable confidence. I believe that the results of the strategic initiatives mentioned earlier, designed to create a compelling and exciting one stop gaming and entertainment platform, will lead to significantly improved financial results,” concluded Eke.
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