Webis Holdings PLC on Friday said revenue was down in the first half, as heavy rainfall saw race meetings cancelled.
The Isle of Man-based gaming firm posted a pretax loss of $325,000 in the six months ended November 30, widening from a pretax loss of $70,000 in 2021.
The company said revenue for the period was $6.2 million, down 8.8% from $6.8 million a year ago. Webis noted that ‘unprecedented severe weather conditions’ in California during the winter led to a lack of content due to the cancellation of seven race meetings.
‘We have health and safety obligations to our equine and human participants at the track and, of course, without live racing, revenue levels were below normal,’ the company commented.
Webis said conditions have improved, and that it expects strong trading until the end-of-season in late April.
Chair Denham Eke said: ‘Our principal subsidiary, WatchandWager.com, had a mixed start to the first six months of the financial year. Trading was strong during the summer months, where we enjoyed excellent commission levels from Saratoga (NY) and Del Mar (CA). On a less positive note, trading was difficult during the months of September, October, and November.
‘I remain extremely confident as we approach the spring months that trading will improve in line with expectations, especially as we roll out our new business to customer marketing strategy.’
The company’s business to customer division continues to grow, now contributing 75% of its gross margins, while its business to business division continues to be ‘difficult to manage and maximize margin’.
The company said it is ‘very pleased with the performance of our B2C operations, which has continued to show consistent year-on-year growth compared to the same period last year. It is a key focus to continue this momentum going forward.’.
Webis shares were down 3.5% trading at 2.08 pence per share on Friday morning in London.
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