Online casino operator Gaming VC saw its share price dive to an all-time low today after it warned that results for the year will be materially below original expectations due to poor trading during the third quarter.

Pre-tax profit for the six months ended 30 June was Euro 6.7 million against Euro11.2 million in the first half of 2005 and Euro 1.2 million in the second half. Revenue was Euro 21.2 million against Euro 21.3 million a year ago and Euro 19.3 million during the second half.

CEO Steve Barlow said, “Performance in the first half of 2006 was strong, however, as we anticipated the months of July and August have showed some seasonal weakness. In addition, due to unforeseen direct mail disruptions, combined with an extremely hot summer and post World Cup weakness, our casino business has also been impacted.

“Hopes for a September recovery have not yet fully materialised and therefore we believe that the outcome of second half is likely to be affected,” he added.

Third quarter daily average revenue is now expected to be Euro 102 000, up from the Euro 98 500 produced this time last year, but down on original expectations for Euro 126 000. The shortfall is attributed to increased competition from competitive poker operations attracting Casino Club members' discretionary spend, and the operational challenges.

Meanwhile, growth in the poker business has not offset the slowdown in the higher gross margin casino revenue growth, while poker also remains a “very competitive and crowded market”.

In addition, the company said that while its Spanish language online casino will remain live, all material marketing promotions in the Iberian Peninsula have now been wound down.