Hong Kong-based online gambling firm AsianLogic Limited has issued a trading update revealing that its financial results for the year will be affected by a recently introduced ‘risk management initiative’.
AsianLogic reported positive interim results at the end of September and stated that it is still confident of delivering growth in revenues and profitability for the current financial year and beyond. However, it revealed that the Asia-Pacific region is not immune from the effects of the widely predicted global economic slowdown prompting it to take action in advance of any downturn.
As part of its ‘initiative’, the firm revealed that it has instigated the closure of certain wholesale betting operations that, while prudent and in its best interests medium and long-term, would have a ‘material impact’ on trading in 2008.
“Coupled with this decline in wholesale betting, a number of land-based gaming initiatives that were due to be launched in 2008 have been purposefully delayed until 2009 to ensure that the maximum commercial benefit is achieved from 2009 onwards,” read a statement from AsianLogic.
“Acquisitions and corporate finance activities proved more difficult than expected in 2008 due to general extremely poor investment market conditions but the board sees significant opportunities in 2009 both directly for the company and its investment fund, which is now due to launch in the first quarter of 2009. Income from China-facing operations is expected to commence in early 2009.”
AsianLogic stated that it would not meet its market forecasts for 2008 and expects full-year pre-tax profits to be only marginally higher than the $7.05 million achieved at the end of June, significantly below market expectations.
“The board believes that the 2008 shortfall are one-off in nature and does not reflect the long-term development potential of the company,” read the statement from AsianLogic.