Webis reveals profit drop in ‘challenging’ first half
Webis Holding has revealed that despite a healthy upturn in turnover during the six months through to November 30, 2015, the business suffered a year-on-year decline in profit.
The company, which operates US-based betting service WatchandWager, posted group turnover of $67.9 million (€62 million) in the first half, up 38.7% from $49 million achieved during the corresponding period in the previous year.
Webis noted that group turnover was boosted by an impressive performance by its WatchandWager business, which generated $59.3 million of the total figure, up from 56.9% in the first half of last year.
However, despite theses increases, group gross profit dropped 15.4% from $1.7 million to $1.4 million.
Webis also said that net assets were down from $3.2 million at the year-end on May 31, 2015, to $2.5 million, although cash has increased from $6.1 million to $7.9 million.
Denham Eke, non-executive chairman of Webis, said: “It is clear that the first half of the year has been challenging for WatchandWager, with tightened margins and many exceptional costs during the period impacting on the overall group results.
“More positively the board is pleased to report that the start of the second period of the year (December 2015/January 2016) has seen a gradual improvement in performance.
“Over both months we have seen record levels of turnover, based on continuing operations, and improvements in margin and cost reductions.
“We are expecting this trend to continue to the year-end.”
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