Media Corp's online JV with Hippodrome delayed
Deal to launch "as and when" Hippodrome opens " company considering further acquisitions in gambling sector.
Media Corp has announced that the launch date for its online joint venture (JV) with Hippodrome Casino has been delayed until the summer after the opening of the venue was pushed back.
The JV will launch “as and when” the casino opens, rather than the original target of 1 April. Under the terms of the deal Media Corp will supply the Hippodrome with online casino and poker products, replacing the casino’s previous deal with Gaming Media Group’s B2B arm InTouch Gaming.
The announcement was made in the company’s trading update ahead of its results for the six months ending 31 March 2011, which are expected to be released in June. The update announced that the Media Corp board is considering a series of acquisitions in the gaming sector, which would constitute a reverse takeover, and would see new senior management join the company’s board.
The group also revealed that it is continuing to sell its publishing assets, with the domains Onthebox.com and Forexspace sold for a total of £250,000 in cash. The group has made a profit of £120,000 from the sale, after valuing the sites at £130,000 on the company balance sheet. The directors estimated in the trading update that the sale will save the group £350,000 a year in staff and associated costs, with Onthebox loss-making in 2011, and Forexspace yet to generate any revenues.
Interim CEO Sara Vincent (pictured), appointed in March after chief executive Justin Drummond moved up to chairman of the group in February commented: “The sale of onthebox.com and forexspace.com further reduces the loss making assets in our online publishing business whilst boosting our cash position.
“Eyeconomy continues to trade well and we look forward to provide a full update on it together with Purple Lounge in the publication of our interim results which we hope to be by early June. The board is working hard on the organic growth of the Group’s various divisions and has made good progress towards realising a synergistic acquisition and looks forward to provide further updates as and when appropriate,” Vincent said.
Media Corp posted a 46% year-on-year increase in revenues in the full year ending 30 September 2011.