Weather Lottery hopes to get back in profit
The Weather Lottery said it is set for a "return to profitability" after making changes to its FC Betz subsidiary and taking over the Nottingham Soccerdome complex.
In a trading statement this morning (20 June), the Doncaster-based business said it took a hit from its FC Betz brand - which provided online gaming products through football clubs. The company said it failed to access clubs' databases to build on its own which affected the subsidiary.
The business said FC Betz suffered operating losses of almost £90,000 with club sponsorship costs of approximately £177,000.
The company said today: "Negotiations are in progress to terminate the relevant contracts which it is anticipated should be completed before the company's year-end.
"The directors believe that these negotiations should result in sponsorship costs in the second half being considerably reduced and possibly eliminated, although this might necessitate the institution of legal proceedings.
"However, given the competitive online betting marketplace, the future of FC Betz subsidiary is not perceived as core to the group's operations. No value has been attributed to the current database in the group balance sheet."
However, the company said it was progressing having taken over Devil Fish Poker, the Nottingham Soccerdome and improvements in its lottery division.
The company said: "The board believes that the measures underway in relation to the FC Betz subsidiary and the improved performance from the core lottery division and the online poker and gambling sites, when taken with the acquisition of Soccerdome (with its cross marketing opportunities to the lottery), provide TWL with a sound basis for a return to profitability.
"With minimal bank debt, TWL is well positioned to seek further complimentary acquisitions to improve shareholder value."
