AsianLogic pre-tax profits report leads to Shares Drop
23rd February, 2009
It was reported on Friday that AIM listed, online and land-based gaming operator, AsianLogic Limited has seen its shares fall 17.91%.
The fall in shares came after the company stated it expected pre-tax profits, for the year ending December 2008, of approximately $7 million, a drop of 11% compared to 2007.
In a pre-close trading update on Thursday, AsianLogic said the fall was due to, “trading in a challenging economic environment where sustaining growth required continuing innovation in services provision and product development”.
To try and minimise the effects of the economic slowdown, AsianLogic instigated a number of actions, including the closure of certain betting operations. Numerous land-based gaming initiatives, which were due to be launched in 2008, have also postponed until later this year.
However, AsianLogic also warned that pre-tax profits in 2009 were unlikely to reach the same levels achieved in 2008, saying there would be another drop in profits, as the company required capital expenditure was likely to be significantly higher than in previous years. AsianLogic said in a statement “we are confident that top line revenues would be sustained during the year.”
The group has initiated a strategic review to determine the most appropriate manner in which to prioritise shareholder value, and is expected to announce its 2008 full year results during the second half of April.
By Rommon
