Webis Holdings plc, operator of WatchandWager, has increased group turnover by 41.4% to US$ 209.30 million (2016: US$ 148.08 million) with gross profit increasing by 7.1% to US$ 2.22 million (2016: US$ 2.07 million).

The increase in turnover was largely due to growth in our business-to-business activity in international markets, as well as an increase in business-to-consumer within the US, notably via the watchandwager.com website and mobile product.

Operating expenses showed a small decrease to US$ 2.23 million (2016: US$ 2.26 million). Despite some savings, these were largely offset by increased costs of maintaining and growing our range of licences and also ensuring regulatory compliance within the industry and the various jurisdictions within which we operate. These costs are effectively mandatory and we consider being fully compliant to be absolutely vital to our future growth.

Overall, the Board are encouraged by these results. We are now ranked within the Top Five (ranked by turnover) of licensed USA operators and further cements WatchandWager’s position as a credible provider within the USA. We continue to push forward with our strategy of diversifying our product offering to ensure the stability of our business performance.

Despite generating significant turnover, business-to-business trading is inherently volatile and is high risk in terms of a reducing margin returned. The decisions of key content groups or player groups are largely outside our control. In addition, the performance of our racetrack at Cal Expo has been hampered by low horse numbers, which has created smaller fields and fewer races, hence generating lower betting handle.

In respect of the Condensed Consolidated Statement of Financial Position, our net assets show a small decrease to US$ 1.92 million (year-end 31 May 2017: US$ 1.94 million). Total cash balances stand at US$ 13.65 million (year-end 31 May 2017: US$ 15.07 million).