Malta headquartered River iGaming has announced a suspension of all B2C activities resulting in the redundancy of all individuals in the operation, with the firm establishing a “strong and dedicated” B2B focus during 2020.
The company’s brands include Vegas Casino, Casonic, Spin Genie and Pocket Fruity and licences to run X Factor Games and Britain’s Got Talent Games.
This move builds upon remarks by CEO Kent Staahle in the company’s Q3 presentation earlier this month, stating that developments in the igaming industry had taken “some significant turns” that were said to be “adversely affecting River iGaming’s operations”.
With demand for B2B solutions “above expectations,” Staahle explained that “the market related to the company’s B2C brands has been very challenging, and the B2C business has performed significantly below communicated expectations, which is affecting the overall performance of the group in H2 2019”. Subsequently initiating and partially completing significant cost cuts.
Providing a further update on developments since publishing the Q3 trading presentation, the group explains: “Since Q3 River has carried out a further strategic review of the B2C vertical and the group’s financial situation. River does not expect the market position in the B2C vertical to improve in the short to medium term, and the group’s liquidity situation has become challenging.
“Notwithstanding the significant cost cuts announced in the Q3 report, the company considers that it is not in the best interest of the group to maintain the B2C vertical. Accordingly, the company has decided to suspend all B2C operations, resulting in redundancy of all persons employed in the B2C operations of the group.
“Akur Capital, who had been engaged by the company to dispose of the B2C business (as announced in the Q3 report), will be focusing their engagement on finding acquirers of the B2C vertical’s assets.
“In order to secure the short-term liquidity of the group, one of the company’s shareholders, Klein Group, has agreed to provide short term loans in the amount of up to €1.6m on market terms. The company is working to establish a viable long-term financing for the group.
“River will during 2020 have a strong and dedicated focus on our B2B verticals and is working to expand this business through new business opportunities and partnerships. River Technologies and Mediafusion are both seeing strong interest in their business offerings.”