Business
US LEGISLATION - UPDATE
US LEGISLATION - UPDATE.
About this update from Livermore Investments Group Limited
[{"type":"text","content":"\n Empire Online Limited\n13 October 2006\n\n 13 October 2006\n\n\n\n\n\n Empire Online Limited\n\n\n\n\n\n US LEGISLATION - UPDATE\n\n\n\n\n\nFurther to Empire Online's announcement of 2 October 2006, new legislation\naffecting on line gaming in the USA has been introduced today. After taking\nextensive advice on this matter the Company will terminate its USA business with\nimmediate affect.\n\n\n\nThis action will have a material adverse effect on Empire Online's future\nearnings. Currently, approximately 65% of Empire Online's revenues are generated\nfrom customers based in the USA. The Company's margins will also be affected by\nthe loss of this revenue due to operational gearing and the higher gross margin\ngenerated from the USA business.\n\n\n\nThe Board is confident that the business will continue to generate positive\nEarnings before interest, tax, depreciation and amortisation (EBITDA) for 2007.\nIn the first half of 2006 more than 55% of new real money player sign ups came\nfrom outside the USA. The Company has considerable cash resources at its\ndisposal and the Board re affirms its intention to pay an interim dividend of\n1.7cents per share.\n\n\n\nThe Company will now focus its resources on two key areas:\n\n\n\ndeveloping its market position in online gaming outside the USA,\n\n\n\nleveraging its expertise in on line marketing to other sectors in which it has\nnot previously been involved.\n\n\n\n\n\n\n\n\n\n\n\nEnquiries:\n\n\n\nEmpire Online Limited +357 25 847 700\n\nNoam Lanir, Chief Executive Officer\n\nAndrew Burns, Chief Financial Officer\n\n\n\nHudson Sandler +44(0) 20 7796 4133\n\nJessica Rouleau\n\n\n\n END\n\n\n This information is provided by RNS\n The company news service from the London Stock Exchange \n ","length":2058,"tagName":"div"}]