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Profits Up at Online Casinos Group
16 Apr 2006
Despite its controversial rivalry with online casinos firm Party Gaming, which resulted in a high profile litigation case last year, Empire Online’s profits continue to rise. The online casinos group recorded a 57 percent increase in net profit and reports strong customer growth in new and diverse locations. An estimated 450 new players signed up with the firm’s online casinos in March 2006, an increase of 50 percent on the previous month.
Empire Online made multiple headlines last year. The company’s floatation on the London Stock Exchange in June 2005 was considered highly successful, yet share prices slumped after a series of takeover bids failed. The online casinos group was first reported to be in talks with sports betting firm Sporting Bet, then online casinos rival Party Gaming. After talks with both firms came to nothing, shares in the online casinos group plummeted to less than half their original value. Empire Online’s decision to take Party Gaming to court for reneging on the deal and terminating its “skins” arrangement gave the firm more publicity, but not the type that generally boosts share prices.
However, Empire Online seems to have bounced back from last year’s controversies and has posted a net profit of $41.2 million on net gaming revenue. The online casinos group has also indicated that it intends to purchase a number of new acquisitions to increase the profits generated by its online casinos and poker rooms.
