Eyeconomy buys into Gaming Corp
- Added:
- May 16, 2003
The move follows Eyeconomy's announcement last November that it would use some of its cash reserve to make acquisitions that would allow it to reap immediate rewards reduce its reliance on one area. It already has a 10.5% stake in cash shell Silentpoint PLC, and also plans to take stakes in other publicly quoted companies.
Paul McGroary, chairman of Eyeconomy, said the company decided to invest in Gaming Corp because it is an exciting business in a rapidly growing market sector. He said that while the company had very good technical abilities, it wasn't very active on the marketing front.
"We have basically been tasked with marketing the company and aim to rapidly build up the number of users to bring it closer to profitability," said McGroary.
Gaming Corp runs the casino.co.uk website, an internet gaming portal with over 75,000 unique users per month, as well as TV-listings service Onthebox.
Earlier this week, it announced that it managed to reduce its losses before amortisation of goodwill to £97,875, from £272,044 last year, but claims that its new online casino operation is already trading profitably. Turnover for the six months jumped to £3.65m, up from £339,530 in 2002.
McGroary said that he believes that with Eyeconomy's marketing expertise, it will be able to turn Gaming Corp into a profitable company quicker than it would have been able to achieve on its own.
As a result of the deal, which was a private placing, McGroary and James Dudgeon of Eyeconomy join the board of Gaming Corp as non-executive directors.
"www.eyeconomy.com ":http://www.eyeconomy.com
"www.casino.co.uk ":http://www.casino.co.uk
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