CENTRIC MULTIMEDIA SA announced its Nine-months 2007 consolidated financial results on Thursday November 29, 2007, which are prepared according to the International Financial Reporting Standards.
In specific, consolidated turnover amounted to euro 27.3 mil. in the nine-month period of 2007 over euro 7.8 mil. in the respective period last year, marking a 251.4% increase. The growth in the group?s turnover is mainly attributed to the inclusion in the consolidation of the results of subsidiary SEE SPORTS HOLDINGS LTD for the last 20 days of the period (from 1/09/2007 to 30/09/2007), which was not consolidated in 2006. As a reminder, on September 10, 2007, CENTRIC MULTIMEDIA established the 100% subsidiary SEE SPORTS LTD, while owning a 21% stake in ECN MANAGEMENT LTD. Due to the substantially larger magnitude of SEE SPORTS figures in relation to those of CENTRIC, the group financial statements are by in large affected from the results of its new subsidiary, given that SEE SPORTS consisted 60.5% of the total group turnover for the nine-month period of 2007, despite its short period of consolidation. Consequently, the group results for the nine-month period of 2007 are not comparable with those of 2006.
SEE SPORTS LTD (headquartered in Malta), was founded on August 31, 2007 and its primary business activity is in the participation the online gaming industry. SEE Sports Ltd (headquartered in Malta), acquired the assets of Morna Investments Co (headquartered in the Marshall Islands), and in specific the assets of FLYER SA (headquartered in Panama), which is the joint venture partner of SPORTING BET PLC (headquartered in London and listed in AIM) that manages the website sportingbet.com in the Greek language, and RITCHMOND BET TRADE (headquartered in the Marshall Islands) that is exclusively operating in the management of the accounts of the former.
In addition, group gross profit marked a 17.9% increase in the nine-month period of 2007 and was formed at euro 2.0 mil. over euro 1.7 mil. in the nine-month period of 2006. However, gross profit margin reported lower by 14.6 basis points reaching 7.4% of the group's turnover versus 22.0% in the respective period last year, which is mainly attributed to the low margins of SEE SPORTS. Moreover, the decrease is also attributed to the group sales mix, which includes the sale of consoles, which are high quantity but low margin sales and enhance the group's turnover.
Earnings before interest taxes and depreciation (EBITDA) formed at euro 768 thou. in the nine-months period of 2007 versus euro 568 thou. in 2006 marking a 35.8% increase. Likewise, earnings before interest and taxes (EBIT) amounted to euro 609 thou. over euro 499 thou. in the nine month period of 2006, realizing a 22.1% increase.
Earnings before tax (EBT) reported marginally higher by 0.6% and amounted to euro 324 thou. in the nine month period of 2007 over 322 thou. in the respective period last year. The marginal growth in EBT is mainly due to the increasing interest resulting from the increasing funds used to finance the group?s investment activity.
Last, net after taxes and minorities earnings (EATAM) amounted to euro 57 thou. versus euro 176 thou. in the nine-month period of 2006 marking a 67.5% decrease. This drop in EATAM is caused by the deferred taxation of the group which was reported higher for the nine-month period of 2007.
CENTRIC MULTIMEDIA SA's third quarter marks the inauguration of the new growth trend for the group after completing on September 10, 2007 the acquisition of SEE SPORTS LTD realizing this way the group's strategic plan aiming at the expansion in to new profitable activities, especially in the online gaming industry
Regarding CENTRIC.
CENTRIC MULTIMEDIA S.A. is active in the production and distribution of electronic products and services, as well as in the distribution of PLAYSTATION game series, through the official representation of SONY, the distribution of XBOX game series, through the official representation of MICROSOFT, as well as the distribution of other branded products produced by other Studios. Centric?s basic field of activity is participation in companies operating sportsbook and gaming websites.
Note: The "Financial Data and Information" for the 9M 2007 of CENTRIC, will be published on Thursday November 29, 2007.