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RSS feedsYou’ve reported above consensus for the first half. Tell us about the financials.
It was a robust performance from continuing operations. Revenues were up 42% to $212.5m (£104.1m), and clean EBITDA from the continuing operations was up by 29% to just under $37m. I think that’s a very impressive performance from a business that, at the end of last year, lost 75% of its revenues overnight when the UIGEA Act was passed in the US.
On a segmental basis, how are online poker, casino, sports betting and other emerging games faring?
Poker remains the largest segment. It was 66% of our revenues, and 61% of clean EBITDA. In poker we saw top-line growth of 8%, and at the clean EBITDA level we saw growth of 2%. That reflects the investment we made in growing new player sign-ups in the first quarter.
But with the loss of the US and other high-rollers, presumably yields are down?
Yields are down if you look year-on-year, because in the final quarter we saw many of the high-rollers move on to sites that continued to accept US players.
But if you look at the trend since then for example, between Q1 and Q2, you will see it’s been reversed. We’ve seen a 10% increase in the yield per active player day. That reflects some changes we’ve made to the business, including increased deposit levels and some changes to the rate structure.
How do you see yourself financing future expansion? Do you have the financial flexibility?
As you would have seen from the numbers, the business is naturally cash-generative. We generated more than $32m in operating cashflow in this period.
To the extent that we might want to make any further acquisitions, we can of course use our paper, like we did with Empire Online and Intercontinental Online Gaming earlier this year, and we also believe that other financing options are available to us.
For the full interview and more FD, CFO and CEO online programming, visit www.cantos.com
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