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WatchandWager Announces Huge Loss

The Webis Holdings, the parent company of the WatchandWager has reported a loss of $930,000 for the 12 months ended on May 31st. The loss came after the company lost a wagering syndicate. This has also trigged a year on year decline in customer spending as well. The turnover for the company for the entire year is $47.3m. This is a decline of 13.2% from $54.5m. The total amount spent by the customers also fell sharply. It reduced to a mere $136.4m, a 70.4% decline.

Webis has reported in October that a loss of large wagering syndicate triggered the sharp drop. There has been a huge impact on the business to business relationships and impacted the turnover from Hong Kong Jockey Club and French PMU. However, the loss of the syndicate has also reduced the risk factor for the company. Webis now does not need to depend on a particular agent or group. It will not have an impact on the worldwide license and content as well.

The company said that in the business to the customer sector, the marketing spent has been reduced. Reduction in data feeds and other products have also been made as part of the strategy. The company looked hopeful as even after less marketing, the player numbers were actually up by 16%. The cost, on the other hand, fell thanks to the strategy.

The company said the presence in the US is critical for them. It does have many licenses in the States to take the bets. The Cal Expo racetrack in California certainly helped the operations of Webis. It ran 47 race meets between November 2018 to May 2019. Webis has already renewed the licenses in August 2019.

In terms of geographical representation, the North America race tracks were the major source of income for the company. The turnover from the region was $44.8m even though it fell by 10.8% as compared to the last year.

When it comes to the Advanced Wagering Deposit, the US did best for Webis. It racked up $1.5, a year on year 16.5% increase. The UK Operations turnover stood at $692,000 and the Asia Pacific $273,000.

The Operating Cost was down by 5.1% on a year on year basis to $5.3m. This is mostly due to cutting the marketing cost. The company expects it to reduce further in this financial year.

The loss of syndicate has a huge impact and it cost around $800,000 out of the total loss of $930,000. The company posted a profit of $103,000 in the previous year but things changed. The gross profit was down by 19.2% to $4.5m from $5.6m, reported the company. The operating loss was $889,000. The company posted an operating profit of $143,000 last year.

This has been a mixed year for the company. The WatchandWager told that the US market looks good and the board is overall satisfied even though the figures fell badly. The shareholders are aware of the situation. The US market has edge over other market sectors and the company is hopeful to bounce back in the coming financial years.

Source: https://www.igamingbusiness.com/news/webis-slips-full-year-loss-customer-spending-drops

About the author

Debopom Sanyal

Debopom Sanyal

Debopom is a web journalist and news enthusiast. He has been writing about world politics, science, health, finance, and technology. An avid sports enthusiast, Debopom has done his Masters in Finance and Bachelors in Engineering.

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