Best results ever for Two Way

Australian interactive media and gambling applications firm Two Way Limited has released its financial results for the final six months of 2009 showing a 13.3 percent year-on-year rise in operating revenues to $711,763.

The Sydney-based firm revealed a 10.6 percent year-on-year increase in total revenues to $729,098 as it continues its work to extend its Tab Active television betting service to other parts of Australia after receiving regulatory approval for Western Australia.

“The results are the strongest recorded in the company’s history and show a substantial improvement in operating performance as compared to the previous corresponding period,” read a statement from Two Way.

“However, the net result was adversely impacted by a one-off item as a result of the board’s decision to take an extremely conservative view of the carrying value of the pre-paid wagering fee. The value of this asset has now been written down to zero. This is a non-cash item, which has no impact on the company’s operations and does not reflect any adverse view of the prospects of the television wagering service.”

Two Way revealed that Tab Active recorded ‘extremely strong revenue growth’ for the half-year of 416,836, which was an improvement of 119.2 percent on the previous corresponding period. It stated that this was due to a marketing campaign and the fact that the service had been operational in New South Wales for the full period after launching in October of 2008.

“The increase in wagering revenues was sufficient to outweigh the decline in games revenues, which totalled $181,174 for the half-year, a decline of 49.4 percent,” read the statement.

“The primary reason for the decline in games revenues was the decision by Foxtel to terminate all of its subscription games services on June 30, 2009.”

Two Way’s Way2Bet.com.au wagering portal saw its revenues grow by 12.6 percent year-on-year to reach $65,175 with the Australian firm revealing that the portal ‘continues to grow in popularity among both the company’s bookmaker clients and end-users of the service’.

Development revenue also showed strong growth for the half-year to reach $48,528, which was an increase of 118.9 percent year-on-year.

“These development opportunities can generate good income for the company but are entirely project-driven and depend on ad hoc decisions taken by the subscription television platforms and channels,” read Two Way’s statement.