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Abonner betbull - The European Betting Exchange Plc.

betbull - The European Betting Exchange Plc.

Betbull releases its Annual report 2006

London (euro adhoc) -

  ots.CorporateNews transmitted by euro adhoc. The issuer is responsible for
  the content of this announcement.
balance/Annual report 2006
Betbull plc ("Betbull") announces the release
of group consolidated audited financial statements
1. Financial highlights for the year
?       Betbull has continued its growth during the year 2006, achieving a
record gross income of EUR 89.4 m up by 4 times compared with the year 2005 -
(2005 - EUR 20.1 m) and Net Gaming Revenue of EUR 15.0 m up by 3.75 times
compared with the year 2005 (2005 - EUR 4.0 m).
?       EBITDA reached EUR (0.55) m - (2005 - EUR (5.2) m) and 0.08 m - (2005 -
EUR (4.0) m) before share benefit charge.
?       The Adjusted Operating Loss amounted to EUR (0.97) m - (2005 - EUR (4.2)
m) before Share Benefit Charges of EUR 0.63 m - (2005 - EUR 1.2 m).
?       Betbull maintains a healthy Cash Position of EUR 8.0 m as of 31 December
2006 - (2005 - EUR 10.7 m).
Total cost and expenditures included various extraordinary items, in 
particular, for legal counsel and lobbying as well as the start up 
costs of the business’s in Spain and Italy.
2. Business highlights for the year
?       Private placing raising EUR 4.2 m by issuing 1,050,000 new ordinary
shares, 942,069 not accounted for in the balance sheet, (closed 28 February 2007
yielding a total of 7,621,431 shares issued overall) with the goals to fund
further business development and to maintain flexibility.
?       Award of four licenses in Italy for the cities of Milan and Como in a
tender process.
?       Joint Venture signed with Grupo Orenes, a leading Spanish leisure
operator, with the goal to establish a retail betting chain in Spain.
?       Opening of the first retail betting units in Spain.
?       Completion of repositioning the company as a retail betting operator
with complementary online offering.  The portfolio of retail betting units was
restructured to achieve an overall better performance on fewer outlets.
?       Major swing in continental Europe towards a liberalization of gaming, in
particular, the new legislation in Italy and Spain (Madrid).  The German
monopoly is still heavily contested and must be newly regulated by the end of
2007 following a Constitutional Court Ruling in March 2006.
Commenting on today’s announcement Simon Bold, Director of Betbull, 
said: "Considering the difficult regulatory circumstances under which
Betbull operated in the year 2006 I am very pleased with the growth 
achieved.  I am looking forward implementing business development 
objectives in Spain which will help grow Betbull to the next level." 
Günter Schmid, Director of Betbull, added: "We are still executing 
our strategy of growth in continental Europe via acquisitions, 
partnering and organic growth.  Once the regulatory dust has settled 
down a bit we have the clear sight required to speed up again."
- ENDS -
Contact
David De Marco, Group Finance Director
d.demarco@betbull.com
Phone +356 21480131
Fax +356 21480132
Betbull plc
Tower 42, Level 23/Pillsbury
25 Old Broad Street
London EC2N 1HQ
United Kingdom
Betbull plc is registered in England & Wales under the Registration 
Number 05044730.
This communication can be downloaded from the website 
www.betbullplc.com.
About Betbull
Betbull's goal is to establish itself as one of the leading 
Continental European retail bookmakers.  The Betbull group holds 
bookmaking licences in the UK, Austria, Italy, and Malta and horse 
betting licences in select districts of Germany and Spain.
The high caliber management team (Simon Bold,  David De Marco, 
Alexander Leip, and Günter Schmid) has a strong track record in the 
betting industry with relevant bookmaking experience and know-how 
including sector specific M&A expertise.
Betbull has been listed on the Vienna Stock Exchange since October 
2004 ("BETB", "BETB.VI").
For further details please refer to the website www.betbullplc.com.
betbull plc
Consolidated Financial Statements
Year Ended
31 December 2006
Contents
Page:
1       Directors, advisors and company secretarial matters
2       Executive directors' review
3       Directors' report
4       Statement of directors' responsibilities
5       Report of the independent auditors
6       Consolidated financial statements
7       Consolidated income statement
8       Consolidated balance sheet
9       Consolidated statement of changes in equity
10      Consolidated cash flow statement
11              Notes forming part of the consolidated financial statements
Directors
                        Lorne Abony             (resigned 13 September 2006)
                        Simon Bold
                        Andrew Rivkin   (resigned 13 September 2006)
                        Günter Schmid
                        Norbert Teufelberger
                        Alexander Leip
                        Simon Fielder   (appointed 13 September 2006)
                        David De Marco  (appointed 13 September 2006)
                        David Morgan    (appointed 15 December 2006)
Secretary
Pillsbury Secretarial Limited, Tower 42, Level 23, 25 Old Broad
Street, London EC2N 1HQ
                        (appointed 1 September 2006).
Principal bankers
                NatWest Bank, 57 Line Wall Road, Gibraltar.
                        Erste Bank Der Österreichischen Sparkassen AG, Graben
21, A-1010 Vienna, Austria.
Principal solicitors
                        Pillsbury Winthrop Shaw Pittman LLP, Tower 42, Level 23,
25 Old Broad Street, London
                        EC2N 1HQ (appointed 1 August 2006).
Auditors
BDO Stoy Hayward LLP, 8 Baker Street, London, W1U 3LL.
Registered office
Tower 42, Level 23, 25 Old Broad Street London EC2N 1HQ (changed on 14
September 2006).
Executive Directors’ Review for the year ended 31 December 2006
Review of the financial highlights for the year
?       betbull has continued its growth during the year 2006, achieving a
record gross income of EUR 89.4 m up by 4 times compared with the year 2005 -
(2005 - EUR 20.1 m) and Net Gaming Revenue of EUR 15.0 m up by 3.75 times
compared with the year 2005 - (2005 - EUR 4.0 m).
?       EBITDA reached EUR (0.55) m - (2005 - EUR (5.2) m) and 0.08 m - (2005 -
EUR (4.0) m) before share benefit charge.
?       The Adjusted Operating Loss amounted to EUR (0.97) m - (2005 - EUR (4.2)
m) before Share Benefit Charges of EUR 0.63 m - (2005 - EUR 1.2 m).
?       betbull maintains a healthy Cash Position of EUR 8.0 m as of 31 December
2006 - (2005 - EUR 10.7 m).
Review of the business highlights for the year
?       Private placing raising EUR 4.2 m by issuing 1,050,000 new ordinary
shares, 942,069 not accounted for in the balance sheet, (closed 28 February 2007
yielding a total of 7,621,431 shares issued overall) with the goals to fund
further business development and to maintain flexibility.
?       Award of four licenses in Italy for the cities of Milan and Como in a
tender process.
?       Joint Venture signed with Grupo Orenes, a leading Spanish leisure
operator, with the goal to establish a retail betting chain in Spain.
?       Opening of the first retail betting units in Spain.
?       Completion of repositioning the company as a retail betting operator
with complementary online offering.  The portfolio of retail betting units was
restructured to achieve an overall better performance on fewer outlets.
?       Major swing in continental Europe towards a liberalization of gaming, in
particular, the new legislation in Italy and Spain (Madrid).  The German
monopoly is still heavily contested and must be newly regulated by the end of
2007 following a Constitutional Court Ruling in March 2006.
Directors
The directors who served during this period and to the date of 
signature of this report were as stated on page 1.  Mr. David De 
Marco joined the Board of Directors as Group Finance Executive 
Director on 13 September 2006 and Mr. Simon Fielder joined the Board 
of Directors as a Non-Executive on the same day. Mr. David Morgan 
joined the Board of Directors as Non-Executive Director on 15 
December 2006.
Directors’ Report for the year ended 31 December 2006
The directors submit their report and financial statements for the 
group for the year ended 31 December 2006
Change of company name On 18 May 2006, the company changed its name 
from Betbull - The European Betting Exchange plc to Betbull plc.
Principal activities for the year The principal activity for the year
ended 31 December 2006 was the operation of retail betting outlets 
with complimentary online services.
Results and dividends for the year The results for the year ended 31 
December 2006 are shown in the income statement on page 7. In view 
that the functional currency has changed from GBP to EUR, the 
reported figures are stated in EUR.
The directors do not recommend the payment of a dividend - (2005 - 
EURNil)
A review of the financial and business highlights for the year is 
contained within the Executive Directors’ Review on page 2.
Directors The directors who served during this period and to the date
of signature of this report were as stated on page 1.  Andrew Rivkin 
and Lorne Abony stepped down as non-executive directors on 13 
September 2006. The board is very grateful to Mr. Rivkin and Mr. 
Abony for their outstanding contributions and counsel since the start
of the company and wishes them all the best in the future.
Auditors All of the current directors have taken all the steps they 
ought to have taken to make themselves aware of any information 
needed by the company’s auditors for the purposes of their audit and 
to establish that the auditors are aware of that information. The 
directors are not aware of any relevant audit information of which 
the auditors were unaware.
BDO Stoy Hayward LLP have expressed their willingness to continue in 
office and a resolution to reappoint them will be proposed at the 
forthcoming Annual General Meeting.
By order of the Board
Günter Schmid
Director
17 April 2007
Statement of directors’ responsibilities
The directors are responsible for keeping proper accounting records 
which disclose with reasonable accuracy at any time the financial 
position of the group, for safeguarding the assets of the group and 
for taking reasonable steps for the prevention and detection of fraud
and other irregularities.
The directors are responsible for preparing the financial statements.
The directors have chosen to prepare financial statements for the 
group in accordance with International Financial Reporting Standards 
as adopted by the European Union (IFRSs).
International Accounting Standard 1 requires that financial 
statements present fairly for each financial year the group’s 
financial position, financial performance and cash flows.  This 
requires the faithful representation of the effects of transactions, 
other events and conditions in accordance with the definitions and 
recognition criteria for assets, liabilities, income and expenses set
out in the International Accounting Standards Board’s ‘Framework for 
the preparation and presentation of financial statements’.  In 
virtually all circumstances, a fair presentation will be achieved by 
compliance with all applicable IFRSs.  A fair presentation also 
requires the directors to:
?       consistently select and apply appropriate accounting policies;
?       present information, including accounting policies, in a manner that
provides relevant, reliable, comparable and understandable information; and
?       provide additional disclosures when compliance with the specific
requirements in IFRSs is insufficient to enable users to understand the impact
of particular transactions, other events and conditions on the entity’s
financial position and financial performance.
Financial statements are published on the group's website in 
accordance with legislation in Austria governing the preparation and 
dissemination of financial statements, which may vary from 
legislation in other jurisdictions. The maintenance and integrity of 
the group's website is the responsibility of the directors. The 
directors' responsibility also extends to the ongoing integrity of 
the financial statements contained therein.
Report of the Independent Auditors To the shareholders of Betbull plc
We have audited the consolidated financial statements (the 
''financial statements'') of betbull plc for the year ended 31 
December 2006 which comprise the consolidated income statement, the 
consolidated balance sheet, the consolidated cash flow statement, the
consolidated statement of change in shareholders' equity and the 
related notes. These financial statements have been prepared under 
the accounting policies set out therein. Respective responsibilities 
of directors and auditors The directors' responsibilities for 
preparing the annual report and the financial statements in 
accordance with International Financial Reporting Standards (IFRSs) 
as adopted by the European Union are set out in the statement of 
directors' responsibilities. Our responsibility is to audit the 
financial statements in accordance with International Standards on 
Auditing (UK and Ireland). We report to you our opinion as to whether
the financial statements give a true and fair view and have been 
properly prepared in accordance with IFRSs as adopted by the European
Union. We read the other information contained in the Annual Report 
and consider whether it is consistent with the audited financial 
statements. The other information comprises only the Executive 
Directors’ Review and the Directors’ Report. We consider the 
implications for our report if we become aware of any apparent 
misstatements or material inconsistencies with the financial 
statements. Our responsibilities do not extend to any other 
information. Our report has been prepared pursuant to the terms of 
our engagement letter dated 11 January 2007 and for no other purpose.
No person is entitled to rely on this report unless such a person is 
a person entitled to rely upon this report by virtue of and for the 
purpose of the terms of our engagement letter or has been expressly 
authorised to do so by our prior written consent. Save as above, we 
do not accept responsibility for this report to any other person or 
for any other purpose and we hereby expressly disclaim any and all 
such liability. Basis of audit opinion We conducted our audit in 
accordance with International Standards on Auditing (UK and Ireland) 
issued by the Auditing Practices Board. An audit includes 
examination, on a test basis, of evidence relevant to the amounts and
disclosures in the financial statements. It also includes an 
assessment of the significant estimates and judgments made by the 
directors in the preparation of the financial statements, and of 
whether the accounting policies are appropriate to the group's 
circumstances, consistently applied and adequately disclosed. We 
planned and performed our audit so as to obtain all the information 
and explanations which we considered necessary in order to provide us
with sufficient evidence to give reasonable assurance that the 
financial statements are free from material misstatement, whether 
caused by fraud or other irregularity or error. In forming our 
opinion we also evaluated the overall adequacy of the presentation of
information in the financial statements. Opinion In our opinion the 
consolidated financial statements give a true and fair view, in 
accordance with IFRSs as adopted by the European Union, of the state 
of the group’s affairs as at 31 December 2006 and of its loss for the
year then ended. Emphasis of matter - Regulatory issues In forming 
our opinion, which is not qualified, we have considered the adequacy 
of, and draw attention to, the disclosures made in note 21 to the 
financial statements concerning the risk of adverse action arising 
from regulatory developments in various countries. Note 21 includes a
statement that the group has not been able to quantify any potential 
impact of the regulatory uncertainty on the financial statements for 
the year ended 31 December 2006.
BDO STOY HAYWARD LLP
Chartered Accountants
London
17 April 2007
Consolidated income statement
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Note    2006    2005
                EUR     EUR
Net gaming revenue              14,950,383      3,951,173
Operating expenses              (4,088,098)     (3,260,233)
Administrative and other expenses               (12,472,657)    (6,050,961)
Operating loss
Interest receivable     2       (1,610,372)     (5,360,021)
5       94,184  180,801
Interest payable        5       (3,420) (2,953)
LOSS BEFORE TAX         (1,519,608)     (5,182,173)
Taxation        6       (1,053,487)     (153,786)
LOSS AFTER TAX FOR THE YEAR ATTRIBUTABLE TO THE EQUITY HOLDERS OF THE PARENT
(2,573,095)
(5,335,959)
LOSS PER SHARE  7
Basic           EUR 0.35        EUR 1.10
Diluted                 EUR 0.35        EUR 1.10
The notes on pages 12 to 27 form part of these financial statements.
Note    2006    2006    2005    2005
                EUR     EUR     EUR     EUR
Assets
Non-current assets
Property, plant and equipment   8       2,534,990               1,636,991
Goodwill        9       18,284,300              20,947,659
Investments             23,400          23,400
Deferred tax assets             206,133         57,825
21,048,823              22,665,875
Current assets
Inventories     10      89,354          2,028
Trade and other receivables     11      2,632,509               2,936,893
Cash and cash equivalents       12      8,000,142               10,670,052
10,722,005              13,608,973
Total assets                    31,770,828              36,274,848
Liabilities
Current liabilities
Trade and other payables        13      3,877,753               6,422,463
Corporation tax payable         1,426,467               1,242,288
Total current liabilities                       5,304,220
7,664,751
Non-current liabilities
Financial liabilities   14      701,911         4,020,698
Total non-current liabilities                   701,911         4,020,698
Total liabilities                       6,006,131               11,685,449
TOTAL ASSETS LESS TOTAL LIABILITIES
25,764,697
24,589,399
Equity attributable to equity holders of the company
Share capital   15              560,649         521,146
Share premium                   29,971,069              26,947,098
Merger reserve                  2,963,270               2,963,270
Retained earnings                       (9,764,826)             (7,191,731)
Share benefit reserve                   1,807,993               1,172,837
Cumulative translation reserve                  226,542         176,779
TOTAL EQUITY                    25,764,697              24,589,399
Approved and authorised for issue by the Board on 17 April 2007.
Günter Schmid
Director
The notes on pages 12 to 27 form part of these financial statements.
Share
capital Share premium   Merger
reserve Accumulated
 loss   Share
 benefit
 reserve        Cumulative
translation
 reserve        Total
        EUR     EUR     EUR     EUR     EUR     EUR     EUR
Balance at
1 January 2005  328,739
14,670,281
(1,855,771)
13,143,249
Share capital issued    192,407 12,276,817
12,469,224
Loss for the year       -
(5,335,960)
(5,335,960)
Share benefit expense for the year      -       -
-       -
1,172,837
-       1,172,837
Merger relief   -       -       2,963,270
-       -       -       2,963,270
Foreign exchange        -       -       -       -       -       176,779
176,779
Balance at
1 January  2006 521,146
26,947,098
2,963,270
(7,191,731)
1,172,837
176,779
24,589,399
Share capital issued    39,503  3,023,971       -       -       -       -
3,063,474
Loss for the year       -       -       -       (2,573,095)     -       -
(2,573,095)
Foreign exchange        -       -       -       -       -       49,763  49,763
Share benefit expense for the year      -       -
-       -
635,156
-       635,156
Balance at
31 December 2006        560,649 29,971,069
2,963,270       (9,764,826)
1,807,993
226,542 25,764,697
The following describes the nature and purpose of each reserve within total
equity:
Resource
Share capital:  Nominal value of amounts subscribed for share 
capital.
Share premium:  Amount subscribed for share capital in excess of 
nominal value.
Merger reserve: Amount subscribed for share capital in excess of 
nominal value         when the shares have been issued as part of an 
acquisition and at least 90% of the share capital is acquired.
Accumulated loss:       Cumulative net gains and losses recognised in
the consolidated         Income statement.
Share benefit reserve:  Fair value of share options and warrants granted.
Cumulative translation reserve: Cumulative foreign exchange movements.
The notes on pages 12 to 27 form part of these financial statements.
Note    2006    2006    2005    2005
                EUR     EUR     EUR     EUR
Cash flows from operating
activities
Loss before tax         (1,519,608)
        (5,182,173)
Adjustments for:
Depreciation            1,058,415
        169,929
Impairment of goodwill reduction                -
        70,810
Loss on sale of property, plant
and equipment           -
        13,324
Interest received               (94,184)
        (180,801)
Interest paid           3,420
        2,953
Income tax paid         (1,017,616)
Foreign exchange                (176,196)
Share benefit expenses          635,156
        1,172,837
(1,110,613)
        (3,933,121)
Movements in trade and other
receivables
304,384
983,136
Movements in trade and other
payables                (2,890,934)
        (1,660,260)
Movements in inventories                (87,326)
        10,350
(2,673,876)
        (666,774)
Net cash used in operating
activities                      (3,784,489)
        (4,599,895)
Cash flows from investing
activities
Purchase of property, plant
and equipment
(1,956,414)
(420,000)
Proceeds from sale of property,
plant and equipment             -
        28,769
Acquisitions net of cash acquired               (83,245)
        (9,094,167)
Interest Received               94,184
        180,801
Net Cash used in investing
activities                      (1,945,475)
        (9,304,597)
Cash flows from financing
activities
Issue of ordinary  shares               3,063,474
        11,439,802
Interest paid           (3,420)
        (2,953)
Net cash generated from
financing activities                    3,060,054
        11,436,849
Net movement in cash and
cash equivalents                        (2,669,910)
        (2,467,643)
Cash and cash equivalents at
the beginning of the year
12
10,670,052
13,137,695
Cash and cash equivalents at
the end of the year
12              8,000,142
        10,670,052
The notes on pages 12 to 27 form part of these financial statements.
Note
Accounting policies     1
Operating loss  2
Staff costs     3
Segment information     4
Interest receivable/(payable)   5
Taxation        6
Loss per share  7
Property, plant and equipment   8
Intangible assets       9
Inventories     10
Trade and other receivables     11
Cash and cash equivalents       12
Trade and other payables        13
Non-current financial liabilities       14
Share capital   15
Financial risk management       16
Acquisitions    17
Related party transactions      18
Subsidiaries    19
Operating leases        20
Contingent liabilities  21
1 ACCOUNTING POLICIES
betbull plc is a company registered in the United Kingdom.  The 
consolidated financial statements that are presented are those of the
company and its subsidiaries (the group).  The consolidated financial
statements comprise the following: income statement, statement of 
changes in net equity, balance sheet, statement of cash flows and the
notes contained on pages 12 to 26 of this report.  The following 
principal accounting policies have been applied in the preparation of
the financial statements:
Basis of preparation
The consolidated financial statements have been prepared in 
accordance with International Financial Reporting Standards (IFRSs) 
issued by the International Accounting Standards Board (IASB) and 
endorsed for use by companies listed on an EU regulated market.
The significant accounting policies applied in the financial 
statement of the group in the prior years are applied consistently in
these financial statements.
Basis of consolidation
Where the company has the power, either directly or indirectly, to 
govern the financial and operating policies of another entity or 
business so as to obtain benefits from its activities, it is 
classified as a subsidiary.   The consolidated financial statements 
present the results of the company and its subsidiaries ("the group")
as if they formed a single entity. Intercompany transactions and 
balances between group companies are therefore eliminated in full.
Accounting principles
In the current year, the Group has adopted all of the new and revised
Standards and Interpretations issued by the International Accounting 
Standards Board (IASB) and the International Financial Reporting 
Interpretations Committee (IFRIC) of the IASB, as they have been 
adopted by the European Union, that are relevant to its operations 
and effective for accounting periods beginning on 1 January 2006. The
adoption of these new and revised Standards and Interpretations has 
not resulted in any significant changes to the Group's accounting 
policies nor have they had a material effect on the amounts reported 
for the current or prior years.
The Group has chosen not to adopt early those standards which will 
become applicable in subsequent years. These include IFRS7 Financial 
instruments - disclosures, effective for periods beginning 1 January 
2009: IFRS 8 Operating segments, effective for periods beginning 1 
January 2009: IAS 23 (revised) Borrowing costs, effective for periods
beginning 1 January 2009; and IFRICs 7 to 12, effective for periods 
beginning between 1 March 2006 and 1 January 2008. The implementation
of these standards and interpretations is not expected to have a 
significant impact on the financial statements.
The areas requiring the use of estimates and critical judgments that 
may significantly impact the Group's earnings and financial position 
are taxation, regulatory compliance and contingent liabilities, share
based payments, impairment of goodwill and the determination of the 
liabilities under earn out arrangements.  Estimates and judgments are
continually evaluated and are based on historic experience and other 
factors including expectations of future events that are believed to 
be reasonable. Actual results may differ from these estimates.
The preparation of financial statements in conformity with generally 
accepted accounting principles requires the use of estimates and 
assumptions that affect the reported amounts of assets and 
liabilities and disclosure of contingent assets and liabilities at 
the date of the financial statements and the reported amounts of 
revenues and expenses during the reporting period. Although these 
estimates are based on management’s best knowledge of current events 
and actions, actual results ultimately may differ from those 
estimates. These areas include the carrying value of fixed assets, 
the treatment of transactions in foreign currencies and liabilities 
under share-based payments and tax. The accounting policies for these
should be read in conjunction with relevant notes.
Business combinations
The consolidated financial statements incorporate the results of 
business combinations using the purchase method. In the consolidated 
balance sheet, the acquiree’s identifiable assets, liabilities and 
contingent liabilities are initially recognized at their fair values 
at the acquisition date. The results of acquired operations are 
included in the consolidated income statement from the date on which 
control is obtained.
1 ACCOUNTING POLICIES (Continued)
Goodwill
Goodwill represents the excess of the cost of a business combination 
over the interest in the fair value of identifiable assets, 
liabilities and contingent liabilities acquired. Cost comprises the 
fair values of assets given, liabilities assumed and equity 
instruments issued, plus any direct costs of acquisition.
Goodwill is capitalised as an intangible asset with any impairment in
carrying value being charged to the income statement.
Where the fair value of identifiable assets, liabilities and 
contingent liabilities exceeds the fair value of consideration paid, 
the excess is credited in full to the income statement.
Impairment of non-financial assets
Impairment tests on goodwill and other intangible assets with 
indefinite useful economic lives are undertaken annually on 31 
December.  Other non-financial assets are subject to impairment tests
whenever events or changes in circumstances indicate that their 
carrying amount may not be recoverable.  Where the carrying value of 
an asset exceeds its recoverable amount (i.e., the higher of value in
use and fair value less selling costs), the asset is written down 
accordingly.
Where it is not possible to estimate the recoverable amount of an 
individual asset, the impairment test is carried out on the asset’s 
cash-generating unit (i.e., the lowest group of assets in which the 
asset belongs for which there are separately identifiable cash 
flows).  Goodwill is allocated on initial recognition to each of the 
group’s cash-generating units that are expected to benefit from the 
synergies of the combination giving rise to the goodwill.
Impairment charges are included within the administrative expenses in
the income statement.
Presentation currency
In view that the operating and functional currency has changed from 
GBP to EUR, the presentation currency has also been changed.
Foreign currency
Transactions entered into by group entities in a currency other than 
the currency of the primary economic environment in which it operates
(the "functional currency") are recorded at the rates ruling when the
transactions occur.  Foreign currency monetary assets and liabilities
are translated at the rates ruling at the balance sheet date 
including goodwill arising on the acquisition of a foreign operation.
Exchange differences arising on the retranslation of unsettled 
monetary assets and liabilities are similarly recognised immediately 
in the income statement.
All assets and liabilities of overseas operations, including goodwill
arising on the acquisition of those operations, are translated at the
rate ruling at the balance sheet date.  Exchange differences arising 
on translating the opening net assets at opening rate and the results
of overseas operations at actual rate are recognised directly in 
equity (the "foreign exchange reserve").  Exchange differences 
recognised in the income statement of group entities’ separate 
financial statements on the translation of long-term monetary items 
forming part of the group’s net investment in the overseas operation 
concerned are reclassified to the foreign exchange reserve if the 
item is denominated in the functional currency of the group or the 
overseas operation concerned.
On disposal of a foreign operation, the cumulative exchange 
differences recognised in the foreign exchange reserve relating to 
that operation up to the date of disposal are transferred to the 
income statement as part of the profit or loss on disposal.
1 ACCOUNTING POLICIES (Continued)
Net gaming revenue
Net gaming revenue comprises the following:
a)      Exchange revenue: This comprises amounts for the provision of the
group’s betting exchange services and this is recognised at the date the market
is settled.
b)      Gaming revenue:  This comprises stakes taken net of returns, wins,
bonuses and commissions earned from betting on horses and sports both over the
Internet and through the group’s agents. Revenue is recognised on the date the
bet is placed.
c)      Commission earned: This comprises commissions earned from third parties
on activities connected with gaming.
Tax
The major components of income tax on the profit or loss ordinary 
activities include current and deferred tax.
Current tax is based on the profit or loss from ordinary activities 
adjusted for items that are non-assessable or disallowed for tax 
purposes and is calculated using tax rates that have been 
substantively enacted by the balance sheet date.
Deferred tax assets and liabilities are recognised where the carrying
amount of an asset or liability in the balance sheet differs to its 
tax base, excluding differences arising on:
•       The initial recognition of goodwill;
•       Goodwill for which amortization is not tax deductible;
•       The initial recognition of an asset or liability in a transaction which
is not a business combination and at the time of the transaction affects neither
accounting or taxable profit; and
•       Investments in subsidiaries and jointly controlled entities where the
group is able to control the timing of the reversal of the difference and it is
probable that the difference will not reverse in the foreseeable future.
Recognition of deferred tax assets is restricted to those instances 
where it is probable that taxable profit will be available against 
which the difference can be utilised.
The amount of the asset or liability is determined using tax rates 
that have been substantively enacted by the balance sheet date and 
are expected to apply when the deferred tax liabilities/(assets) are 
settled/(recovered).
Deferred tax assets and liabilities are offset when the group has a 
legally enforceable right to offset current tax assets and 
liabilities and the deferred tax assets and liabilities relate to 
taxes levied by the same tax authority on either: •       The same 
taxable group company; or •       Different group entities which 
intend either to settle current tax assets and liabilities on a net 
basis, or to realise the assets and settle the liabilities 
simultaneously, in each future period in which significant amounts of
deferred tax assets or liabilities are expected to be settled or 
recovered.
Cash and cash equivalents
Cash comprises cash in hand and balances with banks. Cash equivalents
are short term, highly liquid investments that are readily 
convertible to known amounts of cash.
Trade receivables
Trade receivables are recognised and carried at the original 
transaction value and an estimate for doubtful debts is made when 
collection of the full amount is no longer probable. Bad debts are 
written off when identified.
1 ACCOUNTING POLICIES (Continued)
Property, plant and equipment
All property, plant and equipment is initially recognised at cost.
Depreciation is provided to write off the cost or valuation, less 
estimated residual values, of all property, plant and equipment, 
evenly over their expected useful lives.  It is calculated at the 
following rates:
Plant, machinery and motor vehicles     - 25% straight line
Furniture, fixtures and fittings        - 25% straight line
Computer equipment      - 25% straight line
Leasehold property
improvements
- 25% straight line
Inventories
Inventories are initially recognised at cost, and subsequently at the
lower of cost and net realisable value.  Cost comprises all costs of 
purchase, costs of conversion and other costs incurred in bringing 
the inventories to their present location and condition.
Financial instruments
The carrying amounts of cash and cash equivalents, trade and other 
receivables and trade and other payables approximate to their fair 
value.
The group does not hold or issue derivative financial instruments for
trading purposes.
Trade and other payables
Trade and other payables are recognised and carried at original 
transaction values.
Equity
Equity issued by the company is recorded as proceeds received.
Leases
Where leases are classified as operating lease rentals payable are 
charged to the income statement on a straight-line basis over the 
term of the lease.
Segmental information
The group operates mainly in two primary segments, the exchange and 
gaming. These are situated primarily in the UK and Continental Europe
respectively.
Share-based payments
Where share options or warrants are awarded to employees, the fair 
value of the options (or warrants) at the date of grant is charged to
the income statement over the vesting period.  Non-market vesting 
conditions are taken into account by adjusting the number of equity 
instruments expected to vest at each balance sheet date so that, 
ultimately, the cumulative amount recognised over the vesting period 
is based on the number of options that eventually vest.  Market 
vesting conditions are factored into the fair value of the options 
granted.  As long as all other vesting conditions are satisfied, a 
charge is made irrespective of whether the market vesting conditions 
are satisfied.  The cumulative expense is not adjusted for failure to
achieve a market vesting condition.
Where the terms and conditions of options are modified before they 
vest, the increase in the fair value of the options, measured 
immediately before and after the modification, is also charged to the
income statement over the remaining vesting period.
Where equity instruments are granted to persons other than employees,
the income statement is charged with the fair value of goods and 
services received.
2 OPERATING LOSS
2006
EUR     2005
EUR
This is arrived at after charging
Staff costs (excluding directors' remuneration) 5,053,005       1,865,796
Directors’ remuneration including non-executive directors       826,218 506,073
Share benefit charge    635,156 1,172,837
Depreciation on property. plant and equipment   1,058,415       169,929
Audit fees      126,184 182,743
Goodwill impairment     -       70,810
Lease expenses  1,569,551
228,236
Loss on disposal of fixed assets        -       13,324
3 STAFF COSTS   2006
EUR     2005
EUR
Staff costs (including directors) comprise
Wages & Salaries        5,160,897       2,219,356
Employer’s national insurance contributions and similar taxes   
718,326 152,513
5,879,223       2,371,869
The average number of employees of the group during the period, 
including executive directors, was 109 (2005 - 150).
4 SEGMENT INFORMATION
The group’s primary format for reporting segment information is 
business segments.
Exchange        Gaming  Total   Exchange        Gaming  Total
        2006    2006    2006    2005    2005    2005
        EUR     EUR     EUR     EUR     EUR     EUR
Net gaming revenue      77,855
14,872,528
14,950,383
99,943
3,851,230
3,951,173
Segment expenses        (1,258,494)
(12,203,026)
(13,461,520)
(3,560,883)
(3,307,109)
(6,867,992)
Segment results (1,180,639)
2,669,502
1,488,863
(3,460,940)
544,121
(2,916,819)
Unallocated corporate expenses
(3,099,235)
(2,443,203)
Operating loss                  (1,610,372)
                (5,360,022)
Interest Receivable                     94,184
                180,801
Interest Payable                        (3,420)
                (2,953)
Taxation                        (1,053,487)
                (153,787)
Loss after taxation for the year                        (2,573,095)
       (5,335,961)
EUR                     EUR
Assets
Exchange                        60,892                  623,184
Gaming                  2,796,811
                6,603,035
Unallocated corporate assets                    28,913,125
                29,048,629
Total Assets                    31,770,828
                36,274,848
Liabilities
Exchange                        401,294
                882,394
Gaming                  863,791
                3,707,143
Unallocated corporate liabilities                       4,741,046
                7,095,912
Total liabilities                       6,006,131
                11,685,449
The group’s secondary reporting format for reporting segment 
information is on a geographic basis.
External revenue by
location of customer    Total assets by
location of assets      Capital expenditure by
location of assets
        2006    2005    2006    2005    2006    2005
        EUR     EUR     EUR     EUR     EUR     EUR
UK      77,855
99,943
20,629,213
29,383,732
24,410
Continental Europe      14,872,528
3,851,229
11,141,615
6,891,116
2,018,259
395,587
14,950,383
3,951,172
31,770,828
36,274,848
2,018,259
419,997
5 INTEREST RECEIVABLE/(PAYABLE)
2006
EUR     2005
EUR
Interest receivable     94,184
180,801
Finance income  94,184
180,801
Interest payable        (3,420)
(2,953)
Total finance expense   (3,420)
(2,953)
Net finance income      90,764
177,848
6 TAXATION      2006
EUR     2005
EUR
Current tax expense for the year        1,053,487
153,786
1,053,487
153,786
The tax expense for the year can be reconciled to the loss per the income
statement as follows:
Loss before tax (1,519,608)
(5,182,174)
Tax calculated at the UK tax rate of 30%        (455,882)
(1,554,652)
Effect of different tax rates of subsidiary operations in other jurisdictions
and unutilised tax losses across the group        1,509,369
1,352,995
Tax losses carried forward      -
47,871
Total tax expense for the year  1,053,487
153,786
The current tax is calculated with relevance to the loss of the company and its
subsidiaries in their respective countries of operation:
UK      Rate of 30.0%
Malta   Rate of 35.0%
Germany Rate of 30.5%
There is a deferred tax asset at the year end of EUR 206,133 - (2005 
- EUR 57,825) in respect of temporary timing differences in Malta.
Due to the structure of the group it is not possible to relieve 
unutilised tax losses of approximately EUR 2.75 m - (2005 - EUR 1.98 
m) at the present time and therefore no further deferred tax asset 
has been provided.
7 LOSS PER SHARE
Basic loss per share
Basic loss per share had been calculated by dividing the net loss 
attributable to ordinary shareholders by the weighted average number 
of ordinary shares in issue during the year.
2006
EUR     2005
EUR
Net loss attributable to ordinary shareholders  (2,573,095)
(5,335,959)
Weighted average number of ordinary shares      7,295,719
4,855,993
Basic loss per share    EUR 0.35
EUR 1.10
Diluted loss per share  EUR 0.35
EUR 1.10
As the company has made a loss for the period, the impact of issued 
share options and warrants is to reduce the loss per share. In 
consequence, the potential ordinary shares are antidilutive and are 
not taken into account when calculating diluted earnings per share.
Details of share options and warrants that are potentially dilutive 
are disclosed in note 15 to the financial statements.
8 PROPERTY, PLANT AND EQUIPMENT
Leasehold property improvements Plant machinery and motor vehicles
Fixtures and fittings   Computer equipment      Total
Cost    EUR     EUR     EUR     EUR     EUR
At 1 January 2006
Cost or valuation       66,156
54,428
1,493,599
197,913
1,812,096
Additions       -
63,534
1,869,096
23,784
1,956,414
At 31 December 2006     66,156
117,962
3,362,695
221,697
3,768,510
Depreciation
At 1 January 2006       -
3,401
103,045
68,659
175,105
Charge for year -
34,811
1,009,784
13,820
1,058,415
At 31 December 2006     -
38,212
1,112,829
82,479
1,233,520
Net book value
At 31 December 2006
66,156
79,750
2,249,866
139,218
2,534,990
Net book value
At 31 December 2005
66,156
51,027
1,390,554
129,254
1,636,991
8 PROPERTY, PLANT AND EQUIPMENT (Continued)
Leasehold property improvements Plant machinery and motor vehicles
Fixtures and fittings   Computer equipment      Total
Cost    EUR     EUR     EUR     EUR     EUR
At 1 January 2005
Cost or valuation       32,056
43,122
164,222
239,400
Additions       74,168
54,428
1,459,483
45,109
1,633,188
Disposals       (40,068)
(9,006)
(11,418)
(60,492)
At 31 December 2005     66,156
54,428
1,493,599
197,913
1,812,096
Depreciation
At 1 January 2005       3,339
4,175
16,062
23,576
Charge for year 10,016
3,401
100,155
56,356
169,928
Disposals       (13,355)
(1,285)
(3,759)
(18,399)
At 31 December 2005     -
3,401
103,045
68,659
175,105
Net book value
At 31 December 2005
66,156
51,027
1,390,554
129,254
1,636,991
Net book value
At 31 December 2004
28,717
38,947
148,160
215,824
9 INTANGIBLE ASSETS - GOODWILL
        2006    2005
        EUR     EUR
Brought forward 20,947,659
Additions
-through business combinations (see Note 17)    -
20,841,690
-through business purchases (see Note 17)       124,437 -
Additional fees connected with acquisition in prior year        82,245  -
Foreign exchange        225,959
176,779
Impairment losses       -       (70,810)
Reduction in earn out consideration     (3,096,000)
At 31 December 2006     18,284,300
20,947,659
10 INVENTORIES  2006    2005
        EUR     EUR
Goods held for resale   89,354
2,028
11 TRADE AND OTHER RECEIVABLES
        2006
EUR     2005
EUR
Prepayments and accrued income  145,515
260,213
Other receivables       2,486,994
2,676,680
2,632,509
2,936,893
The carrying amount of trade and other receivables approximates to 
their fair value.
12 CASH AND CASH EQUIVALENTS
        2006
EUR     2005
EUR
Cash on hand and current accounts       7,930,288
7,924,550
Deposits in unitised cash funds 69,854
2,745,502
Cash at bank and on hand        8,000,142
10,670,052
Deposits in unitised cash funds comprise deposits invested in money 
markets and are available for withdrawal at short notice. The 
carrying value of these deposits are approximate to their fair value.
13 TRADE AND OTHER PAYABLES     2006    2005
        EUR     EUR
Players' balances       307,491
418,240
Trade payables  957,593
960,203
Other payables  495,287
249,587
Accruals and deferred income    617,382
1,587,463
Bank borrowings -
23,971
Amount due to shareholders (see note 17)        1,500,000
3,182,999
3,877,753
6,422,463
Bank borrowings due within one year incur interest at the rate of 6.7% per
annum.
The carrying value of trade and other payables equates to their fair 
value.
14 NON-CURRENT FINANCIAL LIABILITIES
2006
2005
        EUR     EUR
Amount due to shareholders (see note 17)        701,911
3,913,002
Bank borrowings -
107,696
701,911
4,020,698
Bank borrowings are due for repayment between two and five years and incur
interest at 6.69% - (2005 - 6.69%) per annum.
15 SHARE CAPITAL
2006    2006    2005    2005
Number of ordinary shares       Number  EUR     Number  EUR
Issued and fully paid   7,621,431
560,649
7,087,500
521,146
Authorised      100,000,000
7,399,000
100,000,000
7,353,000
Shares issued during the year and significant terms and conditions:
•       On 22 May 2006, 105,000, 5p ordinary shares were issued for a total
consideration of EUR735,000
•       On 12 July 2006, 300,000, 5p ordinary shares were issued for a total
consideration of EUR 1,797,957
•       On 21 December 2006, 21,000 5p ordinary shares were issued for a total
consideration of EUR 84,000
•       On 28 December 2006, 25,000, 5p ordinary shares were issued for a total
consideration of EUR 100,000
•       On 29 December 2006, 82,931, 5p ordinary shares were issues for a total
consideration of EUR 346,517
All issued shares are fully paid. The holders of ordinary shares are 
entitled to receive dividends when declared and are entitled to one 
vote per share at meetings of the company.
Warrants and Share Options
The group has issued warrants to two directors and to Erste Bank and 
issued options to certain employees.
Warrants        2006    2006
        Number of warrants      Exercise price
EUR
At 1 January 2006       354,228
Warrants exercised      (105,000)
Granted during the year:
Mr. G. Schmid (Kapsner & Schmid GmbH)   50,772
3.60
Mr. S. Bold     90,000
3.60
At 31 December 2006     390,000
Warrants        2005    2005
        Number of warrants      Exercise price
EUR
At 1 January 2005       105,000 7.00
Granted during the year:
Mr. G. Schmid (Kapsner & Schmid GmbH)   114,228 3.60
Mr. S. Bold     135,000 3.60
At 31 December 2005     354,228
The warrants granted during the year were granted in equal 
installments on a monthly basis from January to June 2006 and were 
granted in lieu of salary. Warrants vest on the grant date and this 
is also the date from which they become exercisable.  The life of the
warrants is 5 years.
Warrants in existence at 1 January 2006 amounting to 105,000 were 
exercised on 22 May 2006.
15 SHARE CAPITAL (Continued)
2006
No. of
options 2006
Exercise
Price
                EUR
Options
At 1 January 2006       103,166
Lapsed during the year  (42,833)
Granted during the year 60,000
4.88
At 31 December 2006     120,333
2005
No. of
options 2005
Exercise
Price
                EUR
Options
At 1 January 2005       236,000 4.76
Lapsed during the year  (152,834)       4.76
Granted during the year 20,000  3.95
At 31 December 2005     103,166
The above options vest in tranches over five years from the date of 
grant based on non-market performance conditions.  If such conditions
are not met the options lapse.  None of the outstanding options at 31
December 2006 had vested. The options are exercisable on the date 
they vest.
The warrants and options have all been valued using the Black-Scholes
model.
The following table gives the assumptions made during the year ended 
31 December 2006
2006    2005
Dividend yield (%)      -       -
Expected volatility (%) 93      64
Risk free interest rate (%)     4.5     4.5
All options and warrants granted during the year are equity settled. 
The share price at the date the options were granted was EUR 4.40 and
the scheme price on the date the warrants were granted was EUR 3.60.
In accordance with International Financial Reporting Standards, a 
charge to the income statement in respect of any warrants or options 
granted under the above schemes will be recognised and spread over 
the vesting period based on fair value at the date of grant, adjusted
for changes in vesting conditions at each balance sheet date.  The 
charge has no cash impact.
2006    2005
        EUR     EUR
Charges in respect of warrants  573,237 1,029,273
Charges in respect of options   61,919  143,564
635,156 1,172,837
16 FINANCIAL RISK MANAGEMENT
The group’s financial instruments comprise cash and liquid resources 
and various items, such as trade receivables and payables that arise 
directly from the operations.  The main purpose of these financial 
instruments is to raise finance for the group’s operations.
In carrying out its various operations, the group is exposed to 
currency and liquidity risk. Betbull’s policy for managing and 
investing funds that are not immediately required is to place such 
funds in products that provide a return of around 3.5% per annum, 
carry only a very small amount of risk and are near instant access.  
Given the nature of the group’s transactions and the level of liquid 
resource available, the directors do not consider the level of 
financial risk to be significant at the current time. However, the 
directors will continue to monitor this situation. There is no 
significant concentration of credit risk.
17 ACQUISITIONS
During the year
Fair value of assets acquired   EUR     EUR
Property, plant and equipment   1,960
1,960
Consideration payable
Cash    1,000
Earn out consideration  125,397
                126,397
Goodwill (Note 9)               124,437
On 1st January 2006 Penalty GmbH acquired the business of a third 
party sub-agent which operates three retail betting units.
In prior year
On 30th September 2005 the group acquired 100% of the voting equity 
instruments of the Leip Group. The Group consists of four entities :
Primebet International Limited
Wettenleip GmbH
Penalty GmbH
OST GmbH
The principal activities of these companies are detailed in note 19 
to the financial statements.
Details of the fair value of identifiable assets and liabilities 
acquired, purchase consideration and goodwill are as follows:
Fair value of assets acquired   EUR     EUR
Property, plant and equipment   1,186,305
Cash    1,827,031
Inventories     11,378
Receivables     3,643,088
Payables        (5,486,375)
1,181,427
17 ACQUISITIONS (Continued)
Consideration payable
Cash paid       9,935,043
Costs of acquisition    727,350
700,000 ordinary shares 3,992,691
Earn out consideration  7,096,001
21,751,085
Goodwill (Note 9)
20,569,658
The fair value of the shares issued was determined by reference to 
their quoted market price at the date of acquisition.   The fair 
value of assets and liabilities acquired are equal to their book 
value.
The Earn-out consideration is dependent on the performance of the 
Leip Group in the period to 31 December 2010.  Earn-out hurdles are 
applicable in each of the years to that date and the directors have 
based the fair value of consideration due under the earn-out 
agreements on projected results as at 31 December 2005.
On 30 November 2005 the group acquired 100% of the voting equity 
instrument of GBO Limited, the principal activity of which is 
detailed in note 19 to the financial statements.
Details of the fair value of identifiable assets and liabilities 
acquired, purchase consideration and goodwill are as follows.
Fair value of assets acquired   EUR     EUR
Property, plant and equipment   26,868
Cash    92,958
Inventories     1,000
Receivables     76,378
Payables        (117,491)
79,713
Consideration Paid
Cash paid       351,745
351,745
Goodwill (Note 9)
272,032
If the acquisitions had occurred on 1 January 2005, group turnover 
would have been EUR 7,227,840 and group loss for the year would have 
been EUR 2,026,815.
Total goodwill arising:
30 September 2005       20,569,658
30 November 2005        272,032
Total Goodwill  20,841,690
In view of the legal situation in Germany (note 21) and based on 
current evidence the company has at its disposal, the maximum earn 
out hurdles will not be met and as a consequence goodwill and 
creditors have been reduced by the value of EUR 3.1 m.
18 RELATED PARTY TRANSACTIONS
Related party transactions
During the year the group obtained services totaling EUR 18,215 - 
(2005 - EUR Nil) from Pillsbury Winthrop Shaw Pittman LLP, an entity 
in which one of the non-executive directors can exercise significant 
influence.  In addition, the balance due by Bwin International 
Limited to the group at 31 December 2006 was EUR 16,357 - (2005 - EUR
19,261).
Amounts paid to key management during the year totaled EUR 826,218 - 
(2005 - EUR 506,073).  Key management also received warrants with a 
fair value of EUR 573,237 - (2005 - EUR 874,956).
19 SUBSIDIARIES
The following companies were subsidiaries of betbull Plc at the end 
of the year and have been included in the consolidated financial 
statements:
Name    Country of registration and operation   Proportion of voting rights and
ordinary share capital held     Nature of business
Betbull Limited Gibraltar       100%    Internet betting services
Betbull Bookmakers Limited      UK      100%    Internet betting services
Betmart Bookmakers Limited      UK      100%    Internet betting services
Betpoint SL     Spain   100%    Betting agencies
Primebet International Limited  Malta   100%    Gaming services
Wettenleip GmbH Germany 100%    Betting agencies
Penalty GmbH    Germany 100%    Betting agencies
GBO Limited     UK      100%    Betting agencies
OST GmbH        Germany 100%    Administrative services
20 OPERATING LEASES
Future minimum lease payments due by the group under operating leases are set
out below:
Land and
buildings
2006    Land and
buildings
2005
        EUR     EUR
Not later than one year 1,027,972
398,134
Later than one year and not later than five years       3,169,835
2,195,651
Later than five years   143,200
178,446
4,341,007
2,772,231
21 CONTINGENT LIABILITIES
From time to time the Group is subject to legal claims and actions. 
The Group takes legal advice as to the likelihood of success of the 
claims and actions and no provision or disclosure is made where the 
directors feel, based on that advice, that action is unlikely to 
result in a material loss or a sufficiently reliable estimate of the 
potential obligation cannot be made.
As part of the Board’s ongoing operational risk assessment process, 
the Board continues to monitor legal and regulatory developments, and
their potential impact on the business, and continues to take 
appropriate advice in respect of these developments.
Regulatory developments- United States of America
On 29 September 2006 the United States Congress passed the Unlawful 
Internet Gambling Enforcement Act (UIGEA). The Act makes it a crime 
for anyone involved in the business of betting and wagering to 
knowingly accept, from transactions originating in the United States 
of America, payments, wire transfers or any other bank instrument in 
connection with unlawful internet gambling. The Act was enacted into 
law when signed by President Bush on 13 October 2006. The activity by
the regulatory authorities in the US has created uncertainty as to 
further actions that may occur, if any.
The Company is not aware of having ever taken any bets from US 
customers.
Current legal situation - Germany
The German law on gaming is currently surrounded with a level of 
legal uncertainty in the areas of public law, criminal law and civil 
law.  A majority of federal states strive for the maintenance, 
strengthening and expansion of the existing national gaming monopoly 
and as noted in the Executive directors’ review, a number of retail 
betting units were closed by the authorities in the year. The ruling 
in respect of sports betting by the federal constitutional court in 
March 2006 could not clarify all relevant general policy matters. 
Pending proceedings on national and supranational levels these issues
will still take considerable time to resolve.
Consequently the Boards’ view is that the status quo will be 
maintained and that the company is operating within the law.
Legal Situation - Other European Countries
With the uncertainty of the on-line gaming market in France the Board
took a decision to cease taking any bets from French customers with 
effect from September 2006.
The Board also considered and reviewed the various legal situations 
in other European countries in which the group operates.
The Board does not consider it probable that a material liability 
will arise in respect of its historic or current activities and does 
not believe that a sufficiently reliable estimate of any potential 
liability can be made in connection with each of the above matters. 
Consequently, no provision has been made in these financial 
statements.
end of announcement                               euro adhoc 18.04.2007 12:02:21

Further inquiry note:

Betbull plc
David De Marco
Investor Relations
Tel.: +356 21480131
e-Mail: d.demarco@betbull.com

Branche: Casinos & Gambling
ISIN: AT0000615331
WKN: A0DKM0
Börsen: Wiener Börse AG / stock market

Plus de actualités: betbull - The European Betting Exchange Plc.
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