Online gaming and advertising services provider Media Corporation has grown its revenues and the Eyeconomy advertising business moved into profit.
In the year to September 2011, Revenues rose 46% to £35.1m, although the pre-tax loss increased from £1.4m to £2.87m. A £1.49m exceptional write-down of intangible assets, relating to the sale of the Gambling.com and Sport.co.uk for £1.5m and an advertising business that had been acquired in the past, was the reason behind the increased loss.
Most of the underlying loss relates to the internet publishing operations. It took time to wind down the operations of the sites sold and there are three sites left - Onthebox.com, Flightcomparison.co.uk and Creditcardexpert.co.uk. These are non-core assets.
Internet gaming company Purple Lounge added 20,000 users taking the total to 120,000. The business was acquired in October 2009 so the rise in revenues from £21.3m to £27.6m is almost like-for-like. The majority of its loss was due to £224,000 of increased costs relating to software suppliers and the gaming levy. There are plans to change the poker network used by the company and this could save more than $1m in a full year.
The new network is on the shortlist for licences in Nevada so it is a potential way for Purple Lounge to enter the US market.
Eyeconomy’s revenues jumped from £2.86m to £7.24m and a loss of £40,000 was turned into a profit of £115,000. The contract with Express Newspapers has been renewed and new business won through Digital Sports Group, which will make a full contribution this year.
The cash outflow from the loss offset the money from the disposal and net cash declined from £2.15m to £2.03m.
At 1.43p a share, Media Corp is valued at £4.61m.
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