Gaming VC to make Isle of Man move; H1s revealed
Gaming VC is to move from Luxembourg to the Isle of Man, if plans by the board are approved by shareholders, the company announced today in conjunction with its half-year results.
GAMING V.C. IS to move from Luxembourg to the Isle of Man, if plans by the board are approved by shareholders.
Gaming VC was incorporated in Luxembourg to acquire The Casino Club in early 2005, an online casino aimed at the German-speaking market.
Gaming VC intends to pursue a “fast-track” redomiciliation to the Isle of Man which will involve no change in shareholdings or in the company’s assets or liabilities and no tax event for shareholders.
In a proposal coinciding with the company’s half-year results, the company stressed the benefits of the move including allowing dividends to be paid without the 15% withholding tax deduction obligatory in Luxembourg; the Isle of Man’s status as a “white-list” jurisdiction familiar with egaming companies; and Gaming VC becoming subject to the City’s Code on Takeovers and Mergers.
The company’s shares will also become eligible for Crest, an electronic means of settling share transactions which removes the necessity of depositary receipts.
The half-year results announced today showed an increase in revenues of 10%, to 26.5m, from 24m at mid-year 2008, in line with the board’s expectations.
The increase was due to a surge in the company’s sportsbook, which increased turnover 58% to 4.9m, from 3.1m at mid-year 2008. The sportsbook margin also increased by 4.4 percentage points to 16.3%, from 11.9% during the same period in 2008.
Gaming, by contrast, which accounts for the lion’s share of revenue, dipped by 2% to 21.6, from 22.9m. The company attributed the decline to a dip in volume in its Casino Club offering, which was “affected by global economic conditions” that meant high-roller customers spent less, rather than led to an overall decline in active numbers.
“This continues to be monitored and managed closely, but remains a highly profitable business,” the company said in a statement.
At 30 June 2009, the company had a net cash balance of 20.8m. Gaming VC’s initial purchase consideration for Brazilian-focused operator Betboo put forward last month was US$4m (3m), paid on 2 July 2009. The net cash balance at 14 August 2009 was 19m.