SOURCE: ShareCast

(London, England) — Switching from direct mail to online marketing helped German-focused online casino and poker group Gaming VC lift profits sharply in the first half of the year.

Profits rose by 28 percent to €8.54m in the six months to June, with revenues 4 percent higher at €22m. Before share option costs profits were 20 percent better at €8.9m.

Trading volumes and margins in the third quarter to date have been in line with the same period in 2006, Gaming VC added.

The cost savings generated from the renegotiated Boss software contract as well the marketing efficiencies from the termination of direct mail for customer recruitment are expected to enhance profitability in the future, it said.

"The new sports book in Italy has seen a positive start with the group now in a position to deliver continued good cash generation from the core German business and profitable growth from other geographic markets in the fourth quarter and beyond," it added.

The interim dividend rises by 5.3 percent to 20c per share.