Webis warns of margin hit from US wagering refund

Business News

Webis Holdings PLC has fallen out with a customer, the company warned its margins would be hurt by it refunding $10m to a syndicate following a commercial dispute.

Webis said the payment would reduce its gross margin for the year ending May 2019 by around $0.8m.
Post refund, the company said its current cash holdings stood at just over $3.1m.

The payment was made by US subsidiary WatchandWager, which had now ceased all wagering services with the syndicate, which it didn’t name for confidentiality reasons. WatchandWager had also decided to streamline its operation and implement additional business efficiencies, including securing replacement business-to-business clients