WorldSpreads boosts revenues but sees costs climb
Spread betting business WorldSpreads has seen losses of almost half a million euros in the first half of its financial year, due to marketing and investment costs.
Heavy marketing spend and a costly investment programme has caused spread betting business WorldSpreads Group to post a loss of almost half a million euros (£380,000) for the first six months of its financial year, the company announced this morning.
The roll out of the group’s strategic growth plan, including increased spend on marketing and advertising and investing the proceeds from the sale of its Irish financial spread betting division across other parts of the business, meant that WorldSpreads recorded a loss before tax of 440,000 compared to a profit before tax of 1.67m in H1 2009. Operating costs for continuing operations increased 79% year-on-year to 5.92m. It also ran the biggest competition in the industry’s history with its 10 trades in a row competition with a prize fund of £100,000.
The group, however, still saw its revenues in the six months to 30 September this year rise by 23% to 7.44m, up from 6.04m compared to the same period last year. The company’s UK business grew strongly posting net revenue growth of 14%, while average trades per day from its international and UK divisions grew by 75% to 7,862 for the six month period.
“Our group balance sheet remains very strong with very little debt and net proprietary cash of 13 million. Our international expansion is progressing as expected and we are now operational in France, Germany, Denmark and Sweden. Marketing campaigns are underway in those territories as well as in the UK and the initial response has been encouraging,” he added.