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Freeloaders never prosper

Popular games provision website Freeloader.com closes

Pure Entertainment Games PLC has decided to close its Freeloader.com website venture, despite its sales force meeting targeted projections for this year so far. The closure, announced this morning, is attributed to "a seasonal downturn in advertising revenue". The company's revenues outside the UK are totally reliant on advertising revenue. Freeloader.com's model turned advertising revenue that was "significantly below expectations", despite the company claiming to have 750,000 registered users on their books. It was very successful here in the UK, but in order to achieve the same levels of success abroad, further investment, fundraising and above all an international sales team would be required. Either that or a close partnership with an appropriate global player in games, Internet or advertising industries. Despite serious discussions with possible partners, the company failed to establish a link, and directors were not interested in a fundraising campaign at the present time. The Freeloader.com model may be sold on and surplus funds distributed to shareholders. Future moves depend on shareholders' interests.

Source - AFX