The Weather Lottery said in a trading statement that it is set for a “return to profitability” after making changes to its FC Betz subsidiary and taking over the Nottingham Soccerdome complex.
In a trading statement the Doncaster-based business, The Weather Lottery said it took a hit from its FC Betz brand – which provided online gaming products through football clubs. The Weather Lottery said FC Betz suffered operating losses of almost £90,000 with club sponsorship costs of approximately £177,000.
The company said in their trading statement, “Negotiations are in progress to terminate the relevant contracts which it is anticipated should be completed before the company’s year-end…The directors believe that these negotiations should result in sponsorship costs in the second half being considerably reduced and possibly eliminated, although this might necessitate the institution of legal proceedings…However, given the competitive online betting marketplace, the future of FC Betz subsidiary is not perceived as core to the group’s operations. No value has been attributed to the current database in the group balance sheet.”
The changes made to TWL’s subsidiary FC Betz are part of the company’s strategy to return to profitability.
The company said in the trading statement, “The board believes that the measures underway in relation to the FC Betz subsidiary and the improved performance from the core lottery division and the online poker and gambling sites, when taken with the acquisition of Soccerdome (with its cross marketing opportunities to the lottery), provide TWL with a sound basis for a return to profitability…With minimal bank debt, TWL is well positioned to seek further complimentary acquisitions to improve shareholder value.”
The company will have its fair share of hurdles to jump moving forward, most of which involve the legal proceedings relating to deals signed by former CEO Keith Milhench.