* ’08 pretax loss $11.9 mln vs $7.9 mln year ago
* Says profitability to be hit in ’09, ’10
* Not to pay final dividend
* Revenue up 82 pct to $98.7 mln
* Shares fall 20 pct (Adds details)
April 30 (Reuters) – Asia-focused online gaming firm AsianLogic Ltd (ALOGC.L) on Thursday reported a 49 percent fall in adjusted pretax profit for 2008, following a significant increase in operational expenses and bad debt provisions.
AsianLogic shares were down 20 percent at 19.5 pence at 0820 GMT.
The company said to counter the fall in adjusted profits it was repositioning the business by looking to dispose of its wholesale-based gaming services and invest further in higher-margin deposit and retail-based products.
“However, the capital expenditure, marketing and advertising spend required to grow this business means that profitability will be impacted throughout 2009 and into 2010”, Vice Chairman Tom Hall said in a statement.
The company said it would not pay a final dividend, making the total dividend for the year 2.9 cents.
AsianLogic’s adjusted pretax profit for the year ended Dec. 31, 2008 almost halved to $6.3 million from $12.4 million last year. Revenue rose 82 percent to $98.7 million.
The company’s operating expenses rose to $6.9 million from $2.8 million a year ago, while financial expenses shot up to $17.9 million from $0.5 million.
It reported a 2008 pretax loss of $11.9 million against a profit of $7.9 million last year. (Reporting by Usman Merchant in Bangalore; Editing by Tresa Sherin)
