Dublin-listed financial spread-betting firm Worldspreads says it has decided to exit its small sports spread betting division after a difficult year for the unit.
The company says this will result in a once-off write down in the carrying value of the sports division of about €1.5m. Worldspreads says it is currently reviewing a number of options in relation to the division and will make an announcement 'very soon'.
In a trading update this morning, the company said that its core financial spread betting business has continued to trade strongly during the second half of its financial year.
It said that excluding the results of its sports division, it expects to announce group profit before tax for the year to March 2009 in line with market expectations. However, it added that the depreciation in the value of sterling against the euro during the year has reduced its UK-based revenues, which make up about 40% of its overall revenues.
Worldspreads said it has continued its expansion plans with new partnerships signed in Poland, Russia, the Dominican Republic and the Czech Republic during the last six months. It says these new ventures are expected to have a positive impact on its results in the next financial year.
