Redbet Shares Slump to New Low on Q3 Results

Amid continuing restructuring of its operations which has seen the launch of a new gaming platform and the company's move to Malta, Redbet Holding AB has reported a 10.2% fall in operating income for the third quarter of 2009 to SEK23.4 million, resulting in a net loss for the period of SEK5.2 million.

Redbet recorded an operating loss of SEK6.5 million (-€633,000) from revenues of SEK23.4 million (€2.28 million) following an increase in operating costs relating to the transfer of the company's gaming business to Malta and increased marketing spend.

As a result, Redbet posted a net loss of SEK5.2 million (-€506,000) or SEK0.5 (-€0.05) per share, a marginal improvement on the same period last year.

At the close of the period, Redbet reported 145,483 registered customers, an increase of 22% year-on-year, with 7,067 active players during the quarter.

For the nine month period ended September 30th, operating income amounted to SEK80.3 million (€7.8 million), a 10.4% improvement year-on-year, with an operating profit of SEK0.2 million versus SEK24.2 million a year ago. After tax, Redbet's nine month loss amounted to SEK0.3 million or SEK0.03 per share compared to a profit of SEK19.4 million last year.

The company added that it has introduced a change in accounting principles used for calculating the company's liability to players and certain transaction expenses, which negatively impacted the third quarter by SEK4.2 million.

The third quarter also saw Redbet transfer its gaming operations to Redbet Gaming Malta, where former business development director Andreas Bjork will take on the role of CEO, as well as a move into the Russian gaming market following the signing of a licensing agreement with Quantum Poker.

Shares in Redbet Holding AB (Co. Profile) (OMX:RBET), which were recently subject to a 5:1 share split, fell 4.48% yesterday in Stockholm to SEK6.40 per share, a new 52-week low.